SB 987 Will Add 15% State Tax on Cannabis in California
ON February 10, 2016 Senator Mike McGuire introduced SB 987 Marijuana Value Tax Act that will add 15% state tax on medical marijuana in the state of California . The proposed tax will help fund law enforcement, neighborhoods, parks, and environmental programs and the revenue will benefit California's cities and counties. According to senate.ca.gov the sales tax will bring in over $100 million in revenue and that number will increase as the cannabis industry grows in volume. There are states that currently oversee medical marijuana sales tax and this bill ensures that the local communities will be able to execute their own taxes and policies in addition to the bill's rate. Senator McGuire’s 15% levy will be added to the previous sales tax (7.25%) and the cost will not be covered by insurance. This bill needs to address the concerns of medical cannabis users and the lawmakers need to take into account how the tax increase will effect those who are medically ill, relying on cannabis to control pain and help their illnesses.