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LA MESA, Calif. (KGTV) -- Local cannabis shops are sounding the alarm, saying higher state tax rates set to take effect next year will drive more customers to the black market.Starting January 1, the state will change the way it calculates the excise tax on all marijuana products, effectively raising the rate by 12.5 percent. The state will also adjust a fee charged to growers by the rate of inflation, raising it to .65 per ounce of flower from .25 per ounce.Marijuana is also subject to sales tax and local taxes, which at the Reserve dispensary in La Mesa is an extra 8.5 percent and 4 percent respectively.RELATED: Exclusive: Police raid illegal Chula Vista pot shop, as prosecution efforts ramp up“What we have here is a clean, safe product, but those extra taxes push people away because they don’t want to spend the extra money,” said Reserve budtender Owen Horsman. “And when that happens, they go and find their product at an unlicensed or illegal spot.”Industry analysts estimate the illegal market still overshadows California’s legal industry, capturing dollars for every spent at a licensed shop.Reserve owner Gregg Holda said the higher taxes will only widen the price gap between the two markets, and further incentivize customers to buy unlicensed cannabis products, which may be counterfeit or untested.“Unfortunately you could be consuming pesticides, molds, stuff that’s really bad,” he said.RELATED: 6 arrested at Chula Vista pot dispensaryIn a statement, the California Department of Tax and Fee Administration said the changes were required by the language of Proposition 64. The agency said it analyzed thousands of transactions and determined the state excise tax wasn’t capturing 15 percent of gross receipts of all cannabis sales, as the law requires. The CDTFA is required to analyze cannabis transactions and set the tax rate every six months. The agency said the changes are designed to capture the appropriate amount of tax revenue that voters approved.The explanation has not reassured marijuana industry leaders.“We believe that the CDTFA’s decision to increase tax burdens on compliant operators is counter to developing a safe industry,” said the California Cannabis Industry in a statement. 2246

LAGUNA BEACH, Calif. (AP) -- A 595-square-foot Southern California cottage with one bedroom and one bathroom is on the market for a hair under million. 162

LA JOLLA, Calif. (KGTV) - Students in a UC San Diego computer science course are still trying to understand why someone put a racial slur in their study guide dozens of times.The CSE 134B midterm study guide was a collaborative effort among the students. Only those in the class had access to it and could edit it anonymously.The night before the exam, students like Raymond Arevalo were shocked to see the n-word in it 85 times."I got on the study guide and saw the instance of the n-word, and then I noticed another instance," said Arevalo. "I was really shocked and kind of mad because this wasn't the first time this has happened before in other classes I've been."Arevalo says he has experienced a negative culture in the computer science program at the school. He says far too often minorities and women are targeted in the male-dominated field.He shared images of the defaced midterm online, hoping to raise awareness of the problems he believes exist."People continue to do these things knowing that they won't get in trouble, and it's like a small joke to them, if the person were to get in trouble that would be nice," said Arevalo.The story was first reported in The Triton, an independent, student-run news source. There they posted the version of the study guide with racial slurs."We're here to learn and get educated, not make others feel ashamed or threatened for just being them," said Olivia Thomsen, a UCSD student.10News called and emailed the class professor for comment but did not hear back.10News also reached out to university officials, they did not comment and referred us to their Principles of Community. 1641

LAGUNA BEACH, Calif. (AP) — The hue and cry over the placement of a bright American flag graphic on police cars has leaders in a small coastal Southern California city considering whether to tone down the design.The Laguna Beach City Council will decide Tuesday night whether to keep the current logo or choose an alternative.Some residents feel the red, white and blue design is too aggressive while others are surprised anyone would object to the American flag.Mayor Pro Tem Steve Dicterow told the Los Angeles Times the council is simply facing "a very narrow decision" about the brightness of the colors, but that the issue has devolved into a broader national conversation about patriotism.He said he has received hundreds of emails from people around the country, mostly in support of keeping the flag designs on the car.The council agreed earlier this year to repaint its squad cars in black and white with the stars and stripes running through the word "police" on the doors. The city has 11 police vehicles.The proposed graphic the council approved in February was a more muted version of the design that now appears on the cars."Clearly, the way it looks on the car is not what anyone expected it to look like," Dicterow said. "I think it's reasonable that we're going to look at it again so that whatever we (approve) is exactly what we put on the car." 1372

LAS VEGAS — A doctor in Reno is pushing back against President Donald Trump's false claim that his photo of an overflow site set up in his hospital's paring garage that was necessitated by a surge in COVID-19 cases is "fake."Last week, Dr. Jacob Keeperman, an emergency medicine specialist who works at Renown Hospital in Nevada, posted a selfie that showed him working in the hospital's parking garage. With cases of the coronavirus spiking in the city, the hospital was forced to repurposes the garage into additional hospital space in order to treat patients."I want to thank all the incredible staff who are Fighting the Good Fight to help all those suffering from COVID-19," Keeperman wrote. "With 5 deaths in the last 32 hours, everyone is struggling to keep their head-up. Stay strong." 801