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- Written by: Elizabeth Larson
The bill would temporarily reduce California’s cannabis excise tax from 15 percent to 11 percent and suspend the cultivation tax altogether through 2022.
“We are helping legal cannabis businesses with their transition into the marketplace, just like we would for any startup industry,” Ma said. AB 286 is authored by Assemblymember Bonta and sponsored by Treasurer Ma.
California’s tax revenue projections for cannabis were low in 2018. The first six months yielded $101 million below what earlier forecasts predicted, largely due to the exorbitant taxes placed on the industry coupled with very limited access to banking.
AB 286 is meant to stimulate the legal cannabis industry in California by creating a more equitable climate for the compliant businesses to compete with the growing grey market.
Another problem is that the black market still exists, making it difficult for compliant cannabis entities to compete with the illicit actors who do not pay the same taxes.
“The black market continues to undercut businesses that are complying with state regulations and doing things the right way,” said Bonta. “AB 286 will temporarily reduce the tax burden on these licensed operators to keep customers at licensed businesses and help ensure the regulated market survives and thrives. This very strategy has been shown to actually increase overall tax revenue in other states.”
It is estimated that the cannabis taxes can generate $8 to $20 billion in annual revenue for California, but cannabis businesses face significant barriers to legal entry due to the 15 percent tax rate imposed by Proposition 64, which was passed in November 2016.
While the goal of Proposition 64 was to generate tax revenue and eliminate the illicit market, excessive taxation is a disincentive to cannabis operators and severely hinders California’s ability to establish a regulated market.
The current taxes imposed on cannabis include a state excise tax of 15 percent, a state cultivation tax of $9.25 per ounce of cannabis flower, and traditional state and local taxes.
In sum, cannabis businesses could accrue tax rates upwards of 45 percent – significantly higher cumulative rates than other businesses operating in California have to pay.
You can follow AB 286 as it makes its way through the Legislature at http://leginfo.legislature.ca.gov/.
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- Written by: California Department of Fish and Wildlife
The presentations are ideally suited for cannabis cultivators, consultants and anyone interested in the topic.
CDFW will address important areas such as how to begin the notification process, Lake and Streambed Alteration agreements, and limiting environmental impacts.
SWRCB will cover policy and permitting, and other important information. Computers will be available for applicants to apply for water rights and water quality permits.
Workshop attendees will have time to talk with agency staff about individual projects. In the coming months, more workshops will be announced throughout the state.
CDFW and SWRCB will present at the following venues:
Wednesday, Jan. 30
10 a.m. to 3 p.m. (presentation at 10:30 a.m.)
Sonoma Lab Works
1201 Corporate Center Parkway
Santa Rosa
For more information, please visit: www.scgalliance.com/event/cannabis-cultivation-permitting-open-house/
Wednesday, Feb. 6
5 to 7 p.m. (presentation at 5:30 p.m.)
The Foothills Event Center
400 Idaho Maryland Road
Grass Valley
For more information, please visit: www.nccannabisalliance.org/calendar/water-board-fish-wildlife-water-rights-a-get-legit-workshop-2/
Tuesday, Feb. 26
10 a.m. to 3 p.m. (presentation at 10:30 a.m.) - Free
North Coast Regional Water Quality Control Board
5550 Skyline Blvd. Suite A
Santa Rosa
Thursday, Feb. 28
10 a.m. to 3 p.m. (presentation at 10:30 a.m.) - Free
Trinity County Fairgrounds
6000 CA-3
Hayfork
In addition, the California Department of Food and Agriculture, or CDFA, will be at the Feb. 26 and 28 workshops.
CDFA will provide an overview of the state's cannabis cultivation licensing program and review the primary requirements for a cannabis farming license. Staff will also be available to answer questions.
CDFW encourages cannabis cultivators to obtain all necessary state licenses and county permits, as well as implement best management practices to reduce environmental impacts.
Following these recommended actions can help cultivators avoid common pitfalls that may lead to enforcement actions.
To learn more about CDFW's role in cannabis cultivation, please visit www.wildlife.ca.gov/conservation/cannabis or email
To learn more about SWRCB, please visit www.waterboards.ca.gov/water_issues/programs/cannabis/.
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- Written by: United States Department of Agriculture
Certain FSA offices have been providing limited services for existing loans and tax documents since Jan. 17, and will continue to do so through Jan. 23.
Beginning Jan. 24, however, all FSA offices will open and offer a longer list of transactions they will accommodate.
Additionally, Secretary Perdue announced that the deadline to apply for the Market Facilitation Program, which aids farmers harmed by unjustified retaliatory tariffs, has been extended to Feb. 14. The original deadline had been Jan. 15.
Other program deadlines may be modified and will be announced as they are addressed.
“At President Trump’s direction, we have been working to alleviate the effects of the lapse in federal funding as best we can, and we are happy to announce the reopening of FSA offices for certain services,” Perdue said. “The FSA provides vital support for farmers and ranchers and they count on those services being available. We want to offer as much assistance as possible until the partial government shutdown is resolved.”
The U.S. Department of Agriculture has temporarily recalled all of the more than 9,700 FSA employees to keep offices open from 8 a.m. to 4:30 p.m. weekdays beginning Jan. 24.
President Trump has already signed legislation that guarantees employees will receive all backpay missed during the lapse in funding.
For the first two full weeks under this operating plan (Jan. 28 through Feb. 1 and Feb. 4 through 8), FSA offices will be open Mondays through Fridays. In subsequent weeks, offices will be open three days a week, on Tuesdays, Wednesdays, and Thursdays, if needed to provide the additional administrative services.
Agricultural producers who have business with the agency can contact their FSA service center to make an appointment.
FSA can provide these administrative services, which are critical for farmers and ranchers, because failure to perform these services would harm funded programs.
FSA staff will work on the following transactions:
– Market Facilitation Program.
– Marketing Assistance Loans.
– Release of collateral warehouse receipts.
– Direct and Guaranteed Farm Operating Loans, and Emergency Loans.
– Service existing Conservation Reserve Program contracts.
– Sugar Price Support Loans.
– Dairy Margin Protection Program.
– Agricultural Risk Coverage and Price Loss Coverage.
– Livestock Forage Disaster.
– Emergency Assistance Livestock, Honey Bees, and Farm-raised Fish Program.
– Livestock Indemnity Program.
– Noninsured Crop Disaster Assistance Program.
– Tree Assistance Program.
– Remaining Wildfires and Hurricanes Indemnity Program payments for applications already processed.
Transactions that will not be available include, but are not limited to:
– New Conservation Reserve Program contracts.
– New Direct and Guaranteed Farm Ownership Loans.
– Farm Storage Facility Loan Program.
– New or in-process Wildfires and Hurricanes Indemnity Program applications.
– Emergency Conservation Program.
– Emergency Forest Rehabilitation Program.
– Biomass Crop Assistance Program.
– Grassroots Source Water Protection Program.
With the Office of Management and Budget, USDA reviewed all of its funding accounts that are not impacted by the lapse in appropriation. It further refined this list to include programs where the suspension of the activity associated with these accounts would significantly damage or prevent the execution of the terms of the underling statutory provision.
As a result of this review, USDA was able to except more employees. Those accounts that are not impacted by the lapse in appropriation include mandatory, multiyear and no year discretionary funding including FY 2018 Farm Bill activities.
Updates to available services and offices will be made during the lapse in federal funding on the FSA shutdown Web page. Programs managed by FSA that were re-authorized by the 2018 farm bill will be available at a later date yet to be determined.
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- Written by: California Department of Insurance
The commissioner is asking insurers to be patient and work with these California residents during this difficult time.
“The federal shutdown is putting Californians at unnecessary risk of losing insurance coverage over late or unpaid bills,” said Commissioner Lara. “I am asking insurers to partner with me to protect our federal workers and contractors in California to give them some peace of mind during this time of uncertainty.”
The partial shutdown of the Federal Government is negatively affecting many California consumers, specifically those employed by the federal government and contractors who are not being paid their regular salary or receiving reimbursements when normally due.
This delay in payment affects these consumers’ ability to pay their bills on time including insurance coverage, mortgages or other loans.
Commissioner Lara asks insurers to take into consideration the difficulties California consumers are facing and will continue to face until the current shutdown has ended.
He urges insurers to relax due dates for premium payments, extend grace periods, waive late fees and penalties, allow forbearance with regard to the cancellation/non-renewal of policies, allow payment plans for premium payments, and exercise judicious efforts to assist affected policyholders and work with them to make sure that their insurance policies do not lapse.