As of Tuesday, California's cannabis excise tax has increased from 15% to 19%. It's an adjustment that many businesses say could be detrimental to an already struggling industry. The California Department of Tax and Fee Administration (CDTFA) is legally required raise cannabis tax every two years. But dispensary owners and legal experts warn this increase will hit far more than just customers' wallets.
In Modesto, Jason David, owner of Jayden's Journey, says the rising costs tied to taxes, fees and permits have already forced him to make tough decisions just to keep his business alive.
"A few years ago, we had to sell our Ceres location to pay for the taxes here because we're upside down on the fees and taxes of Stanislaus County," Davis said. "After that, we've been doing so bad. It's been such a struggle that I had to sell my home because it's too much."
David says his cannabis shop is more than just a business and that it was born from necessity. His son, Jayden, who has a rare form of epilepsy, found life-changing relief through medical cannabis. "We got him down from 22 pills down to one," David said. "People see how he got better so we got into the industry because we wanted to help people and see success for their health."
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