AT LEAST CALI KNOWS.
Governor Newsom out of California signed a bill on Thursday to restructure their adult-use cannabis program. This bill eliminates the cannabis cultivation tax, which the governors believes will reduce the illegal market. “The key provisions going into effect eliminate the marijuana cultivation tax and shift the point of collection and remittance for the separate 15 percent excise tax on cannabis sales from the distribution to the retail level. Additionally, there will be no increase in the excise tax for at least three years under the proposal, which is expected to be signed by the governor and then take effect immediately.” We have spoken at length before that California’s biggest hurdle is California itself, similar to Canada, and this piece of legislation is a move in the right direction. marijuanamoment.net
Speaking of Cali, how are the sales?
June saw a nice tick-up in May, with adult-use sales hitting ~$442M in the month, which it had not hit in 10 months. May was up 3% on a MoM basis and down 8% on a YoY basis. With some of the new tax breaks and reorganization in California, which we wrote about above, it will be interesting to see how it affects the coming months.
WILL GERMANY GET THERE?
Germany continues to make progress in its plans on being the first European country to legalize the adult-use cannabis market. The question remains, how will it look. Which state or country will they model their program like? “My hope is that the government will take the time needed to get this right, as pushing out a botched regulation is a massive risk to public health and Germany’s reputation as a front-runner on adult-use in Europe,” Oliver Zugel, founder and CEO of Bogota, Colombia-based FoliuMed Holdings. There are a ton of unknowns about what Germany has in mind for their legalized market, but other countries will definitely have an eye on them so it is vital that they make a strong impression in order for the market to spread through Europe.
