US EditionCalifornia Wants to Give Marijuana Industry CPR with a Tax Cut
The new law reduces the cannabis excise tax from 19% to 15% until 2028 to help legal businesses compete with the illicit market, which accounts for 60% of consumption.
- On Monday, Governor Gavin Newsom signed AB 564, rolling back a 25% tax increase and locking the cannabis excise tax at 15% through 2028, effective October 1st.
- After a July 1 tax increase pushed buyers to the black market, California cannabis operators lobbied as many small firms struggled and Cresco Labs exited over 2.5 months.
- Legal sales account for about 40% of consumption, and the Governor's Office of Business and Economic Development awarded over $52 million in community reinvestment grants.
- Proponents argued the rollback delivers immediate tax relief for struggling retailers, while nonprofits warned it reduces resources for low-income children and substance-abuse programs.
- The law pairs the tax cap with strengthened enforcement and local grants, and mandates the California Department of Tax and Fee Administration to report revenue changes by December 1, 2026.
18 Articles
18 Articles
Associated Press News
California’s marijuana industry gets a break under new law suspending tax hike
California Gov. Gavin Newsom on Monday signed a bill to roll back taxes on recreational weed in an effort to give some relief to an industry that has struggled to supersede its illicit counterpart since voters legalized marijuana almost 10 years ago.
California wants to give marijuana industry CPR with a tax cut
California Gov. Gavin Newsom on Monday signed a bill to roll back taxes on recreational weed in an effort to give some relief to an industry that has struggled to supersede its illicit counterpart since voters legalized marijuana almost 10 years ago. The law will temporarily revert the cannabis excise tax to 15% until 2028, suspending an increase to 19% levied earlier this year. The...
California Repeals its New Tax Increase on Marijuana - The Ron Paul Institute for Peace & Prosperity
On Monday, California Governor Gavin Newsom signed into law a repeal of a substantial tax increase on marijuana sales in the state. By raising the cost of marijuana on the legal market, the tax increase was leading people to opt instead for making purchases on the black market. Months back, it had looked like the tax increase may be prevented altogether. On June 4, I wrote about how the California Assembly had voted unanimously to approve HB 564…
California's marijuana industry gets a break under new law suspending tax hike
In summary California’s legal weed industry is still overshadowed by the larger black market. A new state law gives businesses a break by delaying a tax increase. Gov. Gavin Newsom on Monday signed a bill to roll back taxes on recreational weed in an effort to give some relief to an industry that has struggled to supersede its illicit counterpart since voters legalized marijuana almost 10 years ago. The law will temporarily revert the cannabis e…
California Governor Signs Bill To Roll Back Marijuana Tax Hike - Marijuana Moment
The governor of California has signed a bill into law to put a pause on a recently enacted tax hike on marijuana products. Weeks after the legislature delivered the measure from Assemblymember Matt Haney (D) to his desk, Gov. Gavin Newsom (D) gave it final approval on Monday. “We’re rolling back this cannabis tax hike so the legal market can continue to grow, consumers can access safe products, and our local communities see the benefits,” Newsom…
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