The Marijuana Value Tax Act was introduced in California this week, if passed, medical marijuana will be taxed at 15% or higher if cities and counties want to enact their own tax. Heavy regulation is coming after the quickly expanding industry has been unregulated since the state's initial legalization almost 20 years ago. The state brought in $50 million in taxes from medical marijuana in 2014 alone. Revenue from cannabis will be split up between the Bureau of Medical Marijuana Regulation, the state's general fund, state parks, the Natural Resource Agency, and last but not least is to local drug and alcohol treatment programs.
The Marijuana Value Tax Act could bring the state more than $100 million in new revenue. The tax was anticipated after the state passed historic regulations last year that require state and local licenses for medical marijuana businesses under the new Bureau of Medical Marijuana Regulations.
Marijuana taxes could eventually be higher than 15 percent if the bill becomes law. As with sales taxes, cities and counties would be able to enact their own local taxes or fees on top of the state’s 15 percent tax