Exaggerating mj taxes in California?

California story:  “The CDTFA says its analysts determined a 60% markup on wholesale collected by distributors must be raised to 80%. It will ensure the tax paid on all products is equal to 15% as required by law.  Cultivation fees are also going up. Basically, Blurton said that means a product that’s \$60 today will be \$70 tomorrow.”  https://fox40.com/2019/12/31/marijuana-dispensaries-worried-about-californias-2020-tax-increase-on-wholesale/

Not following the math.  I don’t know what figures to use, but I’m having trouble seeing why a product that’s “\$60 today will be \$70 tomorrow” on account of taxes.  Looks to me like it should go up a lot less.

1. Cultivation per-ounce tax

Let’s say that \$60 is for an eighth.  The cultivation tax on an eighth went from \$1.16 (1/8 x the old rate of \$9.25 per eighth) to \$1.21 (1/8 x the new rate of \$9.65).  That’s a nickel more tax, but maybe it gets marked up in reselling to . . . a dime?  A quarter?

1. Retail excise tax of 15% of imputed price.

What is the new wholesale price that gets multiplied by 15%?

Say wholesale pre-tax and pre-markup price is and was \$25.  The old markup was \$15 (60% of \$25); the new markup is \$20 (80% of \$25).  So the pre-tax price on which tax is calculated goes from \$40 to \$45.  The tax goes from \$6 (15% of \$40) to \$6.75 (15% of \$45).

More realisitically, maybe, say wholesale pre-tax and pre-markup price is and was \$36.  The old markup was \$21.60 (60% of \$36); the new markup is \$28.80 (80% of \$36).  So the pre-tax price on which tax is calculated goes from \$57.60 to \$64.80.  The tax goes from \$8.64 (15% of \$57.60) to \$9.72 (15% of \$64.80).

++++

Hard to see why the after-tax retail price should go up by \$10 when one tax goes up by a nickel and the other goes up by around a dollar.  There are markups on the taxes, but not 1,000% markups.  Maybe I’m missing something.  I’ll ask some friends in California.