New cannabis regulations on the horizon
“Tax and regulate!” we said, and our voices were heard. With 2018 fast approaching, here are some of the taxation and regulation-related differences to expect. As much as we welcome the new regulations designed to protect public health and safety, we will certainly miss some aspects of our current self-regulated system, like our ability to weigh your flowers in front of you, picking the choicest nugs and enjoying the wafting aromas from the opened jar of flowers. That will disappear at the end of the transition period on July 1. However for many people the increase in taxes may be of more concern, so if you are on a tight budget now is an awesome time to stock up before these changes take effect!
New state excise tax
Beginning January 1, 2018, all patients will be subject to the new 15% excise tax. Everyone pays this tax, which is separate from the state sales tax.
Further up the supply chain, farmers will be taxed $9.25 per ounce for flower and $2.75 per ounce for leaves, and producers will be taxed from 1% to 20% of gross receipts, or $1 to $50 per square foot of marijuana plants (source), so this will likely increase the pre-tax costs as well.
Where will the money go? Scroll down for details.
MMIC benefits
If you haven’t gotten a State Medical Marijuana Identification Card (issued by County health departments), there are a couple of pretty compelling new reasons why it’s a good idea to get one now.
First, holders of the State-issued card are not required to pay the State sales tax (currently 7.25% in Ventura County) on purchases of medical cannabis, medical cannabis concentrate, edible medical cannabis products, and topical cannabis. The cost of the card is capped at $100, so if you spend $115 per month or more on medical cannabis, the card will pay for itself.
Another equally compelling reason: according to the draft state rules, as of January 1, only MMIC holders will be eligible to receive free samples of cannabis products.
Farewell, Auntie Dolores edibles
One of the more disappointing consequences of new restrictions being placed on edibles is leading many manufacturers to cease operations. Sadly, Auntie Dolores is one such company that will no longer be able to produce their current line of edible products. Please contact us if you want to try to get in a final order of caramel corn, glazed pecans, pretzels or cheese crackers before the end of the year and we’ll do our best to accommodate you!
Farewell, strong edibles in general
In the interest of protecting consumers from inadvertently overdoing it on powerful edibles, the new regulations will limit them to 100mg THC per package, and 10mg THC per serving. This means all of the super-potent goodies will be gone, not just Auntie D. Patients are already starting to stockpile these endangered treats, so we highly recommend you get yours while you still can. Goodbye Elvis, so long Hippie, it sure was excellent while it lasted.
