A new pot tax headache in LA

The new year has a new tax headache in store for retailers in LA and some other cities. Despite efforts by the state to lower pot taxes to combat the illegal market, the accounting issue could raise taxes for some consumers.

California’s new tax law, which kicks in on January 1, zeroed out the hated cultivation tax. It also shifted how the industry pays the state’s 15% excise tax. Until now retailers have passed it to distributors who then paid the state. The new structure requires retailers to deliver the tax to the state.