California’s cannabis industry is on the verge of collapse as a shortage of product and over-taxation have pushed businesses to their breaking point, according to an exclusive report from The Sacramento Bee. How will this trend change?

The “how many dispensaries are in california 2021” is a question that has been asked for quite some time. In the California cannabis industry, they say that they have reached their “breaking point.”

California cannabis industry says it's been pushed to 'breaking point'




Several of California’s top cannabis firms have come together to send Gov. Gavin Newsom a grave message this week. Business executives warned the governor’s office and leaders of the state legislature that the state’s legal cannabis sector is on the brink of collapse in a letter issued to them.

“It’s an emergency,” said David Goldman, a board member of The Green Cross dispensary in San Francisco.  


The letter reads, “We need you to realize that we have been pushed to the breaking point.”

“This isn’t just our dispensary; every dispensary is dealing with the same issue,” Goldman added.

The letter’s signatories claim that the industry’s present troubles are directly related to how it is governed and taxed in the state. 

High taxes, according to Goldman, make it difficult for the licensed cannabis business to compete with the pricing given by illicit underground marketplaces.

“If we don’t get ahead of this tax problem. It’s going to slam into us in the state, and it’s going to happen swiftly “Michael Koehn, a member of the Brownie Mary Democratic Club of San Francisco’s board of directors and an advocate for medicinal cannabis patients, concurred. 

According to Goldman, the underground market permits illicit providers to sell cannabis products that are allegedly 50 percent cheaper than their approved equivalents while also being possibly harmful.

“The medication isn’t tested,” Goldman added, “and from my experience, when we’ve tested illegal cannabis, it’s often found to be high in pesticides.” “Lowering taxes will have a negative impact on the illegal market. In the long term, I believe it is a good approach to increase state tax income from cannabis.”

On Sunday, a representative for Newsom’s office issued a statement. 

Erin Mellon, the governor’s communications director, said the governor recognizes the need to reduce unlawful sales and favors tax reform, adding: “It’s evident that the existing tax structure is causing unforeseen but significant problems. Any attempt in this area would need two-thirds of the legislature to act, and the governor is willing to engage with them to find a solution.”

The letter includes requests from industry executives such as an immediate repeal of California’s cultivation tax on producers, a three-year exemption from the state’s excise tax, and the development of retail stores throughout the state.

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California’s cannabis industry says it’s been pushed to “breaking point” with the state’s recent decision to legalize recreational marijuana. As a result, there has been an increase in demand and prices for the product. The price of cannabis is usually determined by how much the dispensary pays per pound. Reference: how much do dispensaries pay per pound.

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