CannabizTeam - Executive Search and Staffing’s Post

As the Cannabis Industry continues to grow, the federal implication of cannabis remains a schedule I substance. In other words, cannabis is still federally considered not to provide any useful benefits. This constricts cannabis operators to certain tax code. However, most states are straying away from these restrictions. in this article, the Manufacturing and Distribution group at EisnerAmper discusses the different tax treatments per state for cannabis operators and how ESOP Plans can help mitigate their tax burden. Check it out through the link below! https://lnkd.in/ejTBiUbt

Free Webinar tomorrow: Can the California Cannabis Industry be Saved? Within the dynamic landscape of California, our firm stands at the forefront of an industry facing a pivotal moment of transformation. The challenges and complexities of the cannabis market are vast, presenting both hurdles and opportunities for innovation and regulatory reform. Join us on June 26, 2024, at 12:00 PM Pacific for a discussion about the future of California’s cannabis market. Our firm is proud to host this insightful webinar featuring industry visionaries Griffen Thorne and Hirsh Jain of Ananda Strategy, who will unpack the complexities and potential pathways for revitalizing the state's cannabis industry. Key Webinar Highlights: ✅ Regulatory Insights: Understand how current and proposed policies impact businesses at a granular level, and what it means for the future. ✅ Market Dynamics: A close look at sales trends and performance comparisons. Where does California stand, and what strategic moves can help bolster the industry’s growth? ✅ Taxation and its Tolls: Analyze the high taxation rates, their effect on the industry, and the potential impact of the proposed excise tax increase. ✅ Enforcement Challenges: An examination of enforcement efforts against illegal operations, the role of local control, and the critical need for systemic reform. Why You Should Attend: Valuable Insights: Gain a comprehensive understanding of the challenges and opportunities within the California cannabis market from leading experts. Strategic Directions: Learn about actionable strategies and innovative solutions aimed at promoting a sustainable and profitable legal cannabis market. Event Details: Can the California Cannabis Industry be Saved? 📅 Date: June 26, 2024 ⏲ Time: 12:00 PM Pacific Register Now: https://lnkd.in/gTGMpDvR We look forward to welcoming you to what promises to be an enlightening and forward-thinking discussion. Together, we can work towards a thriving, equitable cannabis future. 💚 #CannabisIndustry #CaliforniaCannabis #RegulatoryInsights #CannabisWebinar #FutureOfCannabis

Maryland's first quarter of 2024 saw an increase in adult-use cannabis sales tax revenue, totaling over $14.6 million. This slight rise from the previous quarter's revenue supports various funds as established by the Cannabis Reform Act of 2023, which legalized personal use for adults over 21. Key allocations from this revenue include contributions to community initiatives in areas previously impacted by cannabis prohibition, health effects studies, and support for small and minority-owned cannabis businesses. Additionally, local governments receive a small percentage of these revenues, noted as one of the lowest in the nation compared to other states with legalized cannabis. The state's approach involves a fixed 9% excise tax without additional local taxes. https://lnkd.in/gjG5v3yi

Where do those cannabis tax dollars go? 🤔 A great read to help gain an insight into what happens after consumers make a cannabis purchase! 🍃 Should every state publish these findings? #cannabis #cannabisnews #cannabisculture https://lnkd.in/eqpy494Q

The cannabis industry is over-taxed. Here's the reality: - Studies consistently show that legal cannabis does not lead to increased youth access. - Contrary to common misconceptions, our presence does not increase crime rates. - We don't bring down home values; we revitalize dilapidated buildings and improve neighborhoods. - Cities and counties with access to legal cannabis often experience fewer opioid overdoses. Yet, despite our positive contributions, cities and states are taxing us to the brink of extinction. Excessive taxes and predatory development agreements are forcing cannabis businesses to shut down across the state. We aren't asking for special treatment—just fair treatment. It's time for policymakers to recognize the value we bring and stop treating us like a cash cow.

Not to sound pessimistic, but is this where the USA will be … 5 years after hypothetical “federal legalization”? Per the article: The briefing note, titled “Update on financial distress in cannabis production industry,” documents a litany of issues facing the sector, including: - Unfair profits earned by some provincially owned cannabis wholesalers. - Snowballing unpaid excise taxes by cannabis producers. - Almost no sustainable profits earned by cannabis companies. - A disproportionate number of cannabis producers entering creditor protection and even bankruptcy. Falling prices, made worse by ‘inventory liquidations’ by companies that go under.

Adult-Use Cannabis Generates Over $20B in State Tax Revenue Marijuana Policy Project’s new report shows how much tax revenue adult-use cannabis has generated since it began in the first states to do so.

"Its obvious limitations aside, the DCC’s dashboards did publicly expose a now irrefutable truth: the (legal) California cannabis market is much smaller and weaker than we thought. Per the DCC, California did just $4.9 billion in legal sales in 2022, and was on pace to do far less in 2023. Often mistakenly described in the media as a “$6 billion cannabis market,” California is in fact less than a $5 billion market today (and shrinking). The state has, by far, the lowest per capita sales of any mature cannabis market. If California’s legal market was simply performing on par with Michigan’s or Montana’s, it would be generating a staggering $13 billion in annual sales. One of the major drivers of California’s struggles is a highly punitive, multi-layered tax system which prices most cannabis consumers out of the legal market. This system regards the legal cannabis industry as a “piggy bank” meant to subsidize specific favored non-profits and interest groups, which in return provide political support for the state’s elected leaders. Unsurprisingly, there is often limited accountability from those leaders in how this cannabis tax revenue is spent. Despite repeated evidence that this tax system is fueling an increasingly violent illicit cannabis market in California that puts the state’s residents at risk, Governor Gavin Newsom (D) and the state legislature have demonstrated an unwillingness to antagonize the interest groups—or as the administration euphemistically terms them, “revenue recipients”—that they regard as crucial allies in their perpetual aspirations for higher office. This helps explain why California’s cannabis excise tax is set to significantly increase, from 15 percent to 19 percent, in 2025. Insanity."

California's cannabis industry is not just growing—it's contributing significantly to the state's revenue. 🌿 💰 In this financial overview, we take a closer look at how cannabis tax revenue is impacting California's economy and what it means for the future of the industry. Whether you're in the cannabis sector or interested in state finance, understanding these numbers is key. Explore the financial insights #CannabisIndustry #CEO #cannabis #cannabisriskmanager #riskmanagement #USA #Tax #california #TaxRevenue #CaliforniaEconomy #CannabisFinance #CannabisBusiness https://lnkd.in/g4s8gawn