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California cut cannabis tax from 19% to 15% to fight black market sales, but loses $180M in youth and community funding.
California has lowered its state cannabis tax from 19% to 15% to help legal retailers compete with the black market, where products are significantly cheaper.
The move aims to boost legal sales, as previous combined taxes reached about 40%, making legal cannabis three times more expensive than illicit alternatives.
While some economists believe lower taxes could increase overall revenue by expanding the legal market, the change will cut $180 million annually from youth drug prevention and community programs.
Groups like Native Sisters Circle in Sacramento, which rely on cannabis tax funds for after-school initiatives and cultural programs for Indigenous girls, now face funding shortfalls.
The long-term impact on both the industry and public health initiatives remains uncertain.
California redujo el impuesto al cannabis del 19% al 15% para combatir las ventas en el mercado negro, pero pierde $ 180 millones en fondos para jóvenes y comunidades.