California nixes temporary cut for pot taxes

A proposal to temporarily lower taxes on marijuana products in California likely won’t pass the state legislature this year.

Assemblyman Rob Bonta has proposed a bill that would cut taxes on marijuana to 11% from 15% to help licensed marijuana retailers compete with the illegal market. The bill didn’t make it out of the Assembly Appropriations Committee.

The proposal comes as tax collections have been far less than anticipated during the first year recreational marijuana has been legal California. Last week, Gov. Gavin Newsom's administration lowered marijuana revenue estimates by $223 million.

Bonta's proposal would have lowered revenue by an additional $227 million in the fiscal year that begins July 1.

Lawmakers did advance a bill to make it easier for marijuana retailers to use banks.