Gov. Newsom Pledges Marijuana Tax Overhaul To Save California’s Collapsing Cannabis Industry

“You’re looking at 50 percent of the cost of a pound of cannabis–an additional 50 percent of that is a tax!” said Amber Senter, a cannabis entrepreneur producing products in Oakland. She said she likes being able to sell out in the open, in the legal market, but understands why many are still choosing to operate outside the law.

“What’s the incentive for them to come over and pay these crazy taxes?” she said. “Like, they don’t want to.”

Many feel the regulated market is on the verge of collapse, especially for the original small cannabis producers who fought so hard for legalization.

“It’s completely unsustainable. They’re not even able to recoup their cost of production,” said Genine Colemen, Executive Director of an industry group called the Origins Council.

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Cannabis industry on brink of shutting down, business leaders say

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Capitol Rally to Bring Cannabis Tax Crisis to Doorstep of California Lawmakers