California Governor Vetoes Commercial Cannabis Tax Bill

Governor Jerry Brown vetoed an Assembly Bill that provided the cannabis industry with equal treatment under the tax laws by allowing individuals to deduct expenses related to a cannabis business. Governor Brown vetoed the bill due to the cost to California, and stated that the proposal should be a part of the overall budget process. The Governor’s action perpetuates that arbitrary withholding of common benefits available to other California businesses, which may hamper the industry’s growth in the long run.