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Muthsera
Florida Fan
Member since Jun 2017
4540 posts

Shocker: California taxes and regulations are destroying cannabis farms
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quote:

In an ideal season, Mulder’s farm produces about 1,000 pounds of cannabis, an amount that should earn him $1.5 million. After taxes, fees and farm operating expenses, Mulder can expect about $100,000 in net income.


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Some farms have discovered their land includes habitat for endangered species like the spotted owl. When these farmers apply for construction permits to meet Prop 64 requirements like paved roads or new, California Department of Agriculture-compliant processing facilities, they are told they need to wait two years for an environmental impact study, certifying the proposed changes won’t disturb endangered habitat. The farmers are caught in a bureaucratic trap: If they don’t build immediately, the farms won’t be considered compliant, and therefore may not receive a new license to keep growing.


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The “canopy tax” is a county tax on the space in which a farmer will grow his crop—levied before anything is grown. Last year, it was $1 per square foot. Many farmers grow multiple plots of 5,000 or 10,000 square feet, so canopy taxes can quickly reach the tens of thousands of dollars. The cultivation tax, meanwhile, is a state tax levied on harvested marijuana before it is sold, regardless of whether it sells. Neither the canopy or cultivation taxes supplant state or federal income taxes, which also have to be paid on the revenue from cannabis sales.

For Mulder, the cultivation tax on dried cannabis flower last year was $148 per pound. After paying it, a modest $15,000 profit turned into an $80,000 loss.


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The California state government is not oblivious to the fact that taxes and regulations have overburdened the state’s cannabis industry. In fact, it’s suffering too.

State-wide revenue from cannabis taxes in 2018—the industry’s first year under full legalization—met only 30 percent of projections set by the state. California projected $1 billion in tax revenue, but at the end of 2018 had seen only $345 million, according to the Orange County Register.


Blizzard of Chizz
Auburn Fan
Member since Apr 2012
13511 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
Dumbass Cali Dems even managed to frick up legalized weed.


Saint Alfonzo
Syracuse Fan
Princeton
Member since Jan 2019
1619 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
Liberal governments suck at capitalism. Nevada failed at selling booze and pussy, for chrissakes. This isn't much different. Cali will lose it's cannabis industry to other states with less regulations.


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270
gthog61
Georgia Tech Fan
Irving, TX
Member since Nov 2009
44289 posts
 Online 

re: Shocker: California taxes and regulations are destroying cannabis farms
quote:

In an ideal season, Mulder’s farm produces about 1,000 pounds of cannabis, an amount that should earn him $1.5 million. After taxes, fees and farm operating expenses, Mulder can expect about $100,000 in net income.


sounds about right for a lib utopia

Actually a 6.7% profit margin beats a lot of businesses but I bet the taxes and fees continue to go up faster than the revenues.


NIH
LA-Lafayette Fan
Member since Aug 2008
94981 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
Legalize and tax the shite out of it! - Fat OT “conservatives”


Muthsera
Florida Fan
Member since Jun 2017
4540 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
quote:

I bet the taxes and fees continue to go up faster than the revenues.


Between the "Gold Rush" fever of people looking to get in early and the introduction of BigAg, there is an insane oversupply in California, Oregon, and Colorado. The price of legal weed, even after taxes, is now sometimes 50-75% below what it was on the black market previously.


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80
GarmischTiger
LSU Fan
Humboldt County
Member since Mar 2007
6233 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
This a one instance where I am all for regulation and taxation. Growers - at least here - have lived and thrived outside the law for decades. Many are responsible, community oriented folks who have been doing it for generations and take care of the land. But most aren't, and a slew of environmental concerns result that the state and federal government are left to deal with.

And all underground growers don't pay taxes on their income, which is an extreme burden to those of us who do. I have absolutely nothing against weed - legalized or otherwise. But I have zero sympathy for folks being held to the same standard as everyone else.


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29
JuiceTerry
Alabama St. Fan
Roond the Scheme
Member since Apr 2013
39903 posts
 Online 

re: Shocker: California taxes and regulations are destroying cannabis farms
quote:

Legalize and tax the shite out of it! - Fat OT “conservatives”

As opposed to what? Muh war on drugs?

Maybe we should subsidize these farmers, too


NIH
LA-Lafayette Fan
Member since Aug 2008
94981 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
I’m for legalization.

Why should we tax the shite out of it? Explain.
This post was edited on 6/9 at 11:03 am


JLivermore
TBD Fan
Wendover
Member since Dec 2015
1053 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
When you tax the shite out of it, the black market will thrive.
This post was edited on 6/9 at 11:07 am


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NIH
LA-Lafayette Fan
Member since Aug 2008
94981 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
Exactly. Went to Alaska two summers ago and the prices/operations were shite compared to Colorado. IIRC, Roger said at that point the state was regulating the hell out of the industry.
This post was edited on 6/9 at 11:09 am


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FredBear
Georgia Fan
Member since Aug 2017
3670 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
Damn, you can't even get high anymore without some liberal fricking it up.


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110
Muthsera
Florida Fan
Member since Jun 2017
4540 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
quote:

When you tax the shite out of it, the black market will thrive.


This is the exact opposite of what is happening. Consumers are winning because the price is so low despite taxes that there is no incentive to utilize the black market.

The only people being hurt are small growers who had thrived under the less-regulated medical cannabis market. Well, that and state taxpayers that will have to make up the difference in the $700 million budget shortfall that I'm sure was already appropriated


SDVTiger
Hawaii Fan
Off the Wall
Member since Nov 2011
34589 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
This why the "legalize drugs end the drug war" crowds are so stupid



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69
JuiceTerry
Alabama St. Fan
Roond the Scheme
Member since Apr 2013
39903 posts
 Online 

re: Shocker: California taxes and regulations are destroying cannabis farms
Did you really think the gov wasn't going to get their's in a legalized weed scenario?

I mean, I don't know why the production of any plant should be regulated, but that's the way it goes.

It's still a better deal than putting growers behind bars


TrueTiger
LSU Fan
Chicken's most valuable
Member since Sep 2004
36783 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
So, black market weed is still the best way to make money.


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40
FightnBobLafollette
Wisconsin Fan
Member since Oct 2017
5888 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
Where is the destroying part?


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NIH
LA-Lafayette Fan
Member since Aug 2008
94981 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
Are you arguing that the government should be taxing the shite out of legal weed?


Odd take for a libertarian.


JuiceTerry
Alabama St. Fan
Roond the Scheme
Member since Apr 2013
39903 posts
 Online 

re: Shocker: California taxes and regulations are destroying cannabis farms
quote:

Are you arguing that the government should be taxing the shite out of legal weed? 
quote:

I don't know why the production of any plant should be regulated, but that's the way it goes. 

Are you thick?


imjustafatkid
UAB Fan
Alabama
Member since Dec 2011
19180 posts

re: Shocker: California taxes and regulations are destroying cannabis farms
A buddy of mine runs a weed farm out there. I hope this doesn't mess with his farm.


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