Lege TREND. Tax Break for Cannabis Growers

Where: California

What’s the legislation? AB 1948 (2020 | CA)

The tax cuts:

• limited to 3 years
• suspend the cultivation tax
• reduce the excise tax from 15% to 11%

Why is the tax cut necessary?

• to support small farmers struggling to break even
• major players in cannabis, like Flow Kana, are struggling under California’s current cannabis tax structure

What’s the economic issue at play? state and local taxes are considered a contributor to the growing divide between licensed & unlicensed cannabis markets

Sacramento Bee | ‘A LIFELINE FOR THE CANNABIS INDUSTRY’