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Lower Cannabis Taxes Will Be an Option on Oakland's November Ballot

The city currently maintains relatively higher local taxes on cannabis in California.

California Oakland

Right now, Oakland levies some of the highest local taxes on cannabis in California: 5 percent for medical cannabis and 10 percent for recreational pot. In both cases, the tax is applied to every activity in the industry's supply chain, including cultivation, manufacturing, delivery, testing, and retail sales.

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Cannabis industry leaders have warned the city's policymakers for over a year now that its taxes are too high compared to other jurisdictions. This is especially true now that the state is also levying taxes on cannabis. The result is that weed is one of the most taxed industries, and in cities like Oakland, a business has to be doing exceedingly well just to survive.

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These days, not a lot of cannabis companies are doing so well, though. A few big operators are thriving, but the middle has been squeezed out, and lots of consumers have shifted back to the unregulated markets to buy pot due to the price spikes on the legal side.

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Top photo courtesy of Adobe Stock

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