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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
Legitimate investigations continue to finally reveal the depth and breadth of the criminal activities performed in numerous parts of the state by professional guardians. What is clear is that the judges who enable these guardians have consistently failed to do their job of monitoring those very guardians. It is time for law-enforcement to intervene with meaningful and thorough investigations and indictments of the countless complaints submitted by victims of guardianship abuse over the years which have been Casually dismissed by the agencies tasked with protecting the public from exploitation. 608
LAKESIDE, Calif. (KGTV) - Dozens of residents were forced to evacuate from their homes early Tuesday morning after a fire erupted at a Lakeside apartment complex. 170
Ladies and gentlemen…Joe Biden and Kamala Harris. #SNLPremiere pic.twitter.com/khYgAvXKpw— Saturday Night Live - SNL (@nbcsnl) October 1, 2020 150
LA JOLLA, Calif. (KGTV) -- Several hundred people peacefully marched in La Jolla Friday afternoon in support of the Black Lives Matter movement and to protest systemic racism.The group gathered at La Jolla Cove and then walked to Windansea Beach as they held white carnations to signify peace.It wasn't immediately clear how long the protest would be held.The protest is one of several local demonstrations that have been held in San Diego County over the last few weeks. Nationwide, demonstrations have been held, sparked by the death of George Floyd in Minneapolis while an officer held his knee on his neck for nearly 10 minutes. 640
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