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Tax cut for California pot industry: Too little, too late?

FILE - A mature marijuana plant flowers under artificial lights prior to harvest at Loving Kindness Farms in Los Angeles on May 8, 2020. Gov. Gavin Newsom will propose a temporary tax cut for California's marijuana industry, but businesses say it falls short of what's needed to revive the shaky pot economy. Broad legal sales began in 2018 but the industry has struggled with hefty taxes, regulation and competition from a vast illegal marketplace. The administration will recommend eliminating the cultivation tax. But a later increase would come in the cannabis excise tax to make up for those funds, possibly as soon as 2024. Jerred Kiloh of the United Cannabis Business Association says the plan would not cut consumer prices or lure buyers from the underground market. (AP Photo/Richard Vogel, File) FILE - California Gov. Gavin Newsom announced that California will spend $20 million on a public awareness campaign about the dangers of vaping nicotine and cannabis products amid a rise in vaping-related illnesses, during a news conference in Sacramento, Calif., Monday, Sept. 16, 2019. Gov. Newsom will propose a temporary tax cut for California's marijuana industry, but businesses say it falls short of what's needed to revive the shaky pot economy. Broad legal sales began in California in 2018 but the industry has struggled with hefty taxes, regulation and competition from a vast illegal marketplace. The administration will recommend eliminating the cultivation tax. But a later increase would come in the cannabis excise tax to make up for those funds, possibly as soon as 2024. (AP Photo/Rich Pedroncelli, File) FILE - Marijuana clone plants are displayed for sale by Interstate 5 Farms at the cannabis-themed Kushstock Festival at Adelanto, Calif., on Oct. 20, 2018. California Gov. Gavin Newsom will propose a temporary tax cut for California's marijuana industry, but businesses say it falls short of what's needed to revive the shaky pot economy. Broad legal sales began in California in 2018 but the industry has struggled with hefty taxes, regulation and competition from a vast illegal marketplace. The administration will recommend eliminating the cultivation tax. But a later increase would come in the cannabis excise tax to make up for those funds, possibly as soon as 2024. (AP Photo/Richard Vogel, File) FILE - A grower at Loving Kindness Farms attends to a crop of young marijuana plants in Gardena, Calif., on Dec. 28, 2018. California Gov. Gavin Newsom will propose a temporary tax cut for California's marijuana industry, but businesses say it falls short of what's needed to revive the shaky pot economy. Broad legal sales began in California in 2018 but the industry has struggled with hefty taxes, regulation and competition from a vast illegal marketplace. The administration will recommend eliminating the cultivation tax. But a later increase would come in the cannabis excise tax to make up for those funds, possibly as soon as 2024. (AP Photo/Richard Vogel, File)
Tax cut for California pot industry: Too little, too late?