Introduced Feb. 15, Senate Bill 1074 suggests an end to the flat-rate cannabis cultivation tax in the state of California. If passed, the dry-weight tax on growers’ yields would fall off the books July 1. 

The current tax rate is $10.08 per dry-weight ounce for flower and $3 per dry-weight ounce for leaves. 

First enacted as part of the Medicinal and Adult Use of Cannabis Regulation and Safety Act (MAUCRSA) in the wake of 2016’s Prop. 64 vote, the cultivation tax has been the target of cannabis growers’ ire. It’s been seen by many as a hurdle for those growers interested in leaving the traditional market and finding a home in the newly regulated and licensed cannabis marketplace—one more financial burden.

State Sen. Mike McGuire, a North Coast Democrat, hopes to put an end to that tax.

However: “The bill would increase, from July 1, 2025, until July 1, 2026, the excise tax by an additional percentage that the Department of Finance estimates will generate half the amount of revenue that would have been collected pursuant to the cultivation tax, and would, beginning July 1, 2026, instead increase the excise tax by an additional percentage estimated by the department to generate the full amount of revenue that would have been collected pursuant to the cultivation tax.”

In other words, some of the financial losses the state will cede, in the event this bill passes, will be recouped by shifting the tax assessments over to the retail segment. As things stand now, the excise tax rate sits at 15%.

During the first three quarters of 2021, the combined cultivation and excise taxes brought in almost $1 billion. A good portion of that money—$400 million in the current state budget—is bracketed for child care and prevention services aimed primarily at California children living in poverty.

“That’s why these Prop 64 dollars are so critical,” Marianna Hernandez, a prevention manager at Community Coalition, an advocacy and social justice group based in South Los Angeles, told NBC News. “Any cuts to cannabis tax rates will result in cuts to child care for mostly children of color living in poverty who need that access now more than ever.” 

And it’s not just at the state level that the industry is seeing tax reform materialize in legislation: Monterey County is also considering cutting its various tiers of flat-rate cultivation tax. 

With the price of cannabis flower dropping precipitously, and particularly for outdoor growers along the West Coast, the flat-rate cultivation tax model exasperates financial pressures that have dogged licensed growers since MAUCRSA was first passed. Alongside inflationary adjustments, “[the tax] goes up as a percentage as prices compress, and [it] hits outdoor farmers the hardest,” Glass House Brands President and Co-Founder Graham Farrar told us last month as Gov. Gavin Newsom called for this very reforms. 

LEAMINGTON, Ontario, Feb. 17, 2022 – PRESS RELEASE – Tilray Brands Inc., a leading global cannabis-lifestyle and consumer packaged goods company focused on inspiring and empowering the worldwide community to live its very best life, announced that its medical cannabis division, Tilray Medical, has completed its first sale of medical cannabis in Malta. Tilray’s EU-GMP medical cannabis products are now available in pharmacies across Malta, providing patients with safe and reliable access to high-quality medical cannabis.

Denise Faltischek, Tilray’s chief strategy officer and head of International Business, said, “As demand for cannabis continues to grow across Europe, we’re incredibly proud to partner with established and reliable distribution partners to supply new markets with high-quality medical cannabis which patients can rely on.”

In Malta, patients may obtain prescriptions for medical cannabis and a medical cannabis card through family doctors. Medical cannabis cards are issued by Malta’s Office of the Superintendence of Public Health.

Tilray has a pioneering track record as a company committed to making EU GMP-certified, pharmaceutical-grade medical cannabis products available to patients in need around the world and was the first to successfully export medical cannabis from North America and import medical cannabis products into the EU in 2016.

NEW YORK, Feb. 17, 2022 – PRESS RELEASE – Columbia Care Inc., one of the largest and most experienced cultivators, manufacturers and providers of cannabis products in the U.S., announced that its Brooklyn Heights location, located at 44 Court Street, is the first of its four dispensaries in New York to complete the transition to Cannabist, the company’s new retail experience.

“We are thrilled to bring the industry-leading Cannabist experience to New York, especially on the heels of the expanded patient access regulations announced by the Office of Cannabis Management,” Columbia Care CEO Nicholas Vita said. “We are proud to be able to offer the highest quality cannabis products, the best customer service, and an approachable dispensary experience featuring innovative technology solutions. New York is a transformational state for the cannabis industry, and we are well prepared to serve both the growing medical community and potential adult-use market as those conversations around the adult-use program implementation continue. We are thankful to the OCM, local officials, and the borough of Brooklyn for their continued support in this important market and look forward to furthering our Cannabist footprint in New York and beyond in 2022.”

Cannabist Brooklyn features a product assortment that includes 41 whole and ground flower options, edibles, tinctures, topicals, vapes and a curated selection of hemp CBD products. The dispensary will also carry the company’s own product brands, including Seed & Strain, Classix and Triple Seven, pending regulatory approval.

As one of 10 existing registered organizations in the state, Columbia Care intends to add an additional four medical dispensaries in New York, for a total of eight dispensaries in the state, three of which will be co-located with adult-use, pending regulatory approval. The company has a cultivation facility in Rochester and had its first harvest in December at its Riverhead greenhouse facility, one of the largest cultivation and production sites on the east coast.

Columbia Care was also the first operator to offer whole flower to the growing number of patients in New York in October 2021. The company also provides product through wholesale channels to other registered organizations across the state, with its product available on more than 85% of retail shelves.

The store will hold a ceremonial ribbon-cutting celebration at the dispensary Feb. 17.

For more information, please visit www.gocannabist.com/brooklyn.