HUMBOLDT COUNTY, Calif. — Cannabis became legal for recreational use in California in 2016, and licensing for recreational use began in January 2018. Nearly a decade after recreational marijuana became legal in California, two cannabis owners expressed that, between the taxes and competition, the cannabis businesses aren’t the same. Last month, the Humboldt County Board of Supervisors reduced the rate of a cannabis excise tax to zero onOct. 28, ending a lengthy debate over the law’s effect on struggling growers.

Julius Adams, one of the founders of the Cannabis store Proper Wellness Center, says businesses have been good, but with constant competition from new cannabis shops, a variety of taxes and regulations, it may be discouraging to new business owners.

” Every penny is regulated and so every penny is taxed, so it really scares off a lot of people from wanting to be a part of this, you know, when especially taxes are as high as they are,” said Adams.

One of the Proper Wellness distributors is cannabis farm Sol Spirit, which operates as a small farm business. Owner Judi Nelson says she’s steeped in competition with big distributors, and she has to work two jobs just to stay afloat.

“50% of my whole sale price is like a sunk cost by the time that 8th is even available for a store to buy. What I get out of it as the person who created it from scratch, the state takes more than what I get for doing nothing,” said Nelson.

Governor Gavin Newsom signed legislation reducing the 19% excise tax on cannabis to 15%, but Nelson says other regulations and hurdles are also making business difficult, such as state distribution laws.

“So if I were able to send my very specialized product to anyone in the country who appreciated it and wanted it and was willing to pay me fairly for it, that would solve all of my problems”.

Both Adams and Nelson encourage people in Humboldt to shop locally to help small businesses stay afloat.

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