Weed Tax Tussle: Californians Score Cheaper Pot

0:00Californians passed Proposition 64 back on November 8, 2016, legalizing recreational marijuana with plans for a 15 percent. Ex-size tax starting January 1, 2018. But right away, the Board of Equalization ruled that medical patients with county ID cards are now exempt from state sales tax, which is 7.5 to 10 percent. That means cheaper weed for legit patients sooner than expected. The catch is, Prop 64 did not spell out when the sales tax break would start, so it kicked in at midnight on Election Day per-stay rules. Prop supporters called this interpretation absurd, saying both taxes were meant to launch together to rake in hundreds of millions for public health and other programs. Patients are thrilled with the savings, but state leaders worry about losing revenue estimates range from $1.2 million to nearly $50 million next year. The only about 2 percent of users have those pricey county cards costing around $150 each.

1:03Board members who oppose the prop are pushing back hard, and now everyone's scrambling for a fix. Prop authors are talking appeals, while the board chats with lawmakers and the attorney general for a quick ruling to delay the break until the ex-size tax hits. This tax tussle shows how tricky rolling out legal weed can be. Balancing patient access with the cash flow states crave, keep an eye on it as they hash out the details in the coming weeks. That's your update from California News Today, powered by AI.