Many cannabis companies across the state are struggling with high taxes, most of which come from the state. At the Woodlake City Council meeting last week, cannabis cultivator 7 Points presented the council with information regarding cannabis taxes and their effect on the industry. They proposed additional tax breaks at the local level.
“There are state taxes and local taxes, and we pay both in addition to an excise tax,” 7Points CEO Wayne Bishop said. “The real fight is at the state level, but it takes a long time to make a change, and this industry doesn’t have that much time.”
At the city council meeting on April 25, Bishop presented the council with a presentation explaining where the need for help is. He also showed what other counties throughout the state have done to help their local business owners. Along with other dispensaries in the area, Bishop asked the council to consider a three-year break on all cannabis taxes. Additionally, their desire is to redirect all cannabis taxes that are collected to put them back into the industry to make it more robust. After implementing these changes, the items would be brought back for reevaluation in three years.
Bishop said they have had an extremely tough year, the worst he has seen in the industry. Bishop also said there are a lot of farmers that aren’t going to make it, and there are already businesses collapsing. Bishop said his company is currently struggling with the cultivation tax, paying around $160,000 a year without any help. “From my perspective at the cultivation level, we’ve had no tax break,” Bishop said. “If it isn’t for flower, nothing else gets made.”
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