California governor Gavin Newsom recently signed bill AB 37 which provides tax relief to the state’s cannabis businesses. The bill allows businesses to deduct free medical cannabis donations to low income patients. Additionally, businesses will not have to pay taxes on these “compassionate donations.” 

The bill’s passage comes as a victory for low income medical patients who are unable to afford the cannabis they need due to the increased taxes and costs of Proposition 64.  Under the new law, cannabis businesses will now be able to set up charitable programs to benefit patients, and not be penalized with taxes.

The bill is available to view here.

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