As 2019 closed out, the State did the opposite of what the cannabis industry requested: California announced it would raise pot taxes.

Also in December, “How High,” a report from the Legislative Analyst’s Office, presented “as a least worse option” that we switch to a taxation formula based on THC levels.

This “How High” departure would leave behind the current weight-based system, which the report calls the weakest option.
SF Weekly

  • Harm reduction is an element of motivation behind the proposed restructuring. “The negative effects of cannabis use seem to be particularly high for high-potency products, high-frequency use, and youth use,” analyst Gabriel Petek writes.
  • Unsurprisingly, the industry isn’t super up for shifting tax modes. Zachary Pitts California Cannabis Delivery Alliance president said he was “stunned” that California would “think [this] is an acceptable solution for anything.”

Quick Hits

  1. The company formerly known as Origin House, CannaRoyalty Corp., is part of Cresco Labs now that the merger has closed. New year, same consolidation.
    New Cannabis Ventures
  2. Trinity County legend Bailous Eugene Smith was an old-school rabble rouser, a Vietnam vet and pot pioneer who joined a bunch of gold prospectors deep in the Trinity Alps, lived off the land, and grew weed. This week he died at 72.
    Cannabis Now