Colorado governor offers advice to California on taxing legal marijuana

by Placerville Newswire / Feb 14, 2017 / comments

[Sac Bee]

California took a major step last November when voters approved an initiative legalizing recreational marijuana, but there is still much work to be done before licensed businesses can begin selling weed to customers next year.

One of the biggest challenges facing state regulators is how to enforce a cultivation tax on growers and a 15 percent sales tax that were included in the ballot measure.

California tax officials have complained for years about the difficulty of collecting revenue from the medical marijuana industry, which largely pays taxes in cash because few financial institutions will take its money. And the exponentially larger legal weed market will create new demands on a program tracing the plant through every step of the distribution chain to ensure that no untaxed product is sold.