Even with projections of a 31-billion dollar state budget surplus, more tax increases are on the way for cannabis growers by next July. The California Department of Tax and Fee Administration says the latest rate hike reflect an adjustment for inflation, as required by law. But John Foley, a grower and board member of the Nevada County Cannabis Alliance, says it shows how the state is out of touch with their market…

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Foley says it could also mean even fewer growers wanting to pay already-costly fees to be legally permitted. Last month, the Alliance told County Supervisors that just 16 acres of legal cannabis would have provided over 400-thousand dollars in tax revenue in 2020…

click to listen to John Foley

California’s revenue from state marijuana taxes is up 26-percent from last year. For the second quarter alone, 333-million dollars was collected. Even though state voters legalized the consumption and sale of recreational cannabis in 2016, much of the market remains underground.