Don't Pass The Joint, Pass The Tea: California Cannabis Cafes Approved By State Assembly

California lawmakers greenlighted a measure allowing cannabis dispensaries statewide to sell non-cannabis food and beverages, reported KTVU.

The members of the State Assembly approved AB 374 on Wednesday in a 64-9 vote, sending it to the state Senate for consideration.

Under the bill, sponsored by Matt Haney, customers would be allowed to use marijuana onsite at Amsterdam-style cannabis cafés.

"If an authorized cannabis retail store wants to sell someone cannabis, a cup of tea and a sandwich, we should allow cities to make that possible and stop holding back our economy and a service that people want," Haney said in February when he introduced the bill. "Those things are all illegal under state law now."

Haney wants to support small cannabis businesses.

 "Allowing cannabis lounges the commonsense option to sell food and beverage that isn't 'prepackaged' and giving them the flexibility to provide entertainment will give a much-needed lifeline to legal cannabis retailers who are struggling mightily to survive in the industry," he explained. "Issues like over-saturation, high taxes, and the thriving black market are hurting cannabis businesses who follow the rules and pay taxes."

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Californians Pay 94% Of Cannabis Excise Taxes

To that end, nearly 94% of cannabis excise taxes that marijuana businesses owed to the state have been paid, according to state officials, who also noted that total sales, as well as tax revenue, declined in 2022.

Aside from a 15% excise tax unique to cannabis, marijuana businesses in California are also subject to basic sales tax, which ranges between 7.25% to 8.25%, depending on the jurisdiction, reported Marijuana Business Daily, citing California Department of Tax and Fee Administration (CDTFA) data.

In 2022, CDTFA reported taxable cannabis sales reaching $5.38 billion, with total taxes owed amounting to $1.11 billion. Outstanding unpaid state taxes totaled $278 million.

Photo: Courtesy of pariwat pannium on Unsplash