Is California’s cultivation tax cut too little, too late?

Businesses respond to California’s cannabis cultivation tax cut which took effect last week.

After four years of exhaustive efforts, California leaders eliminated the cultivation tax along with other changes, providing some bit of respite for cultivators. But does the plan just move money around, and is it even close to enough to save struggling farmers?

California Governor Gavin Newsom released his 2022-2023 revised budget on May 13—most notably containing the much-needed tax cuts. On June 29, Assembly Bill No. 195 passed in the Senate by 34-0, and the California Assembly voted 66-0 in favor of the bill. The bill took effect immediately following the signature of Newsom, providing the legal cannabis industry some much-needed temporary tax relief, which began July 1.