CA SB1074

Discontinues the weight-based cultivation tax on harvested cannabis effective July 1, 2022, which previously taxed cannabis flowers at $9.25 per dry-weight ounce and cannabis leaves at $2.75 per dry-weight ounce.

If the Legislature appropriates funds equivalent to cultivation tax revenue projected for July 1, 2022 to July 1, 2025, the cannabis excise tax increases by 50% of the lost cultivation tax revenue from July 1, 2025 to July 1, 2026, then increases to the full amount from July 1, 2026 onward.

If the Legislature does not appropriate replacement funds by July 1, 2022, the excise tax increases immediately on July 1, 2022 by a percentage sufficient to generate the full amount of lost cultivation tax revenue.

Exempts harvested cannabis from cultivation tax if it was first sold or transferred by a cultivator to a manufacturer on or after June 1, 2022, or sold to a distributor on or after June 1, 2022 without prior manufacturer transfer.

Takes effect immediately as a tax levy and declares the act furthers the purposes of Proposition 64 (Control, Regulate and Tax Adult Use of Marijuana Act).