CLEARLAKE— This Thursday at the most recent Judge’s Breakfast forum, guest speaker and current California State Treasurer Fiona Ma addressed the public regarding cannabis taxes and regulations. This month’s focus is on the cannabis industry. Treasurer Ma discussed potential changes to the California Cannabis taxation system as well as her work on legislation like Senate Bill 1281 and the SAFE Act.
Treasurer Ma said that as a tax accountant, she understands the hardships faced by small businesses, even more so when they have high tax rates hanging over their heads. Responding to public comments asking why cannabis taxes are so much higher than in the f0ood and wine industries, Ma said, “The writers of Proposition 64 did not think it would pass and added the high taxes to pass it, now the only way to change it is going back to the voters.” Senate Bill 1281 would eliminate the cultivation tax, lower the excise tax to five percent, and alter the collection process of these taxes. The bill is supported by Ma who said this would “let the farmers do what they do” and if passed. would go into effect on Jan. 1, 2023. Those who have already paid their taxes or those facing inability to renew their permits for financial reasons are directed to contact Assemblymember Aguiar-Curry or Senator Mike McGuire for options regarding tax amnesty.
The current rate of taxes coupled with the high cost of cannabis banking have prevented cultivators from progressing by creating what the Treasurer calls “an un-level playing field.” Since 2014 Ma has worked to open banking options for cannabis related businesses and with the introduction of the SAFE Act, believes “This is the year that banking access has to be a priority.” Due to cannabis still being illegal at the Federal level, there are no Federal banking options, or really any at all. Ma added, “I said, how can that be? Banking is the American way.” Finally that issue could be remediated with the passing of the SAFE Act, which would allow safe harbor for banks that want to work with cannabis businesses.
Also in consideration is the MORE Act which according to the Treasurer is “more about dismissing criminal penalties and expunging past records for cannabis.” There is much opposition to this Act and it is widely believed it will not pass. There are 33 total Cannabis laws in California legislation this year. In 2020 Ma established an email address for the public to communicate directly with her office and encourages its use asking for anyone with any questions to email her at [email protected].
The Judges Breakfast Club is hosted by Mark Cooper and has been holding meetings for over 20 years in Clearlake, only pausing in-person meetings during the COVID-19 pandemic. The meeting takes place every week at 7 a.m. at the Clearlake Senior Center. Next Thursday’s guest speaker is Cory Smith, Fire Marshall for the Lake County Fire Protection District, and he will be discussing fire safety requirements of the cannabis permitting process.