Newsom Revises California’s Budget, Expects Millions Less In Cannabis Tax Revenue

by Newsfeed

Sales across California’s legal cannabis market will suffer due to coronavirus pandemic and the subsequent economic downturn.

That’s according to Gov. Gavin Newsom, who recently revised his proposed budget to illustrate the effects of Covid-19 on California’s marijuana industry.

What Happened?

Back in January, before the number of reported coronavirus had spiked, Newsom projected that the state’s cannabis excise tax would bring in $479 million this year and $590 million in the fiscal year starting July 1.

The revised budget now expects $443 million this year and a decline to $435 million in 2021.

“While similar products like alcohol and tobacco tend to be recession-resistant, the forecast assumes that cannabis businesses will be more negatively impacted by the COVID-19 pandemic,” the budget says….

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