CaCOA Responds to Cannabis Provisions in Governor Newsom's May Revise Budget

"While we appreciate the Governor's May Revise proposals to shift enforcement costs and enhance DCC authority, we're disappointed that a freeze on the cannabis excise tax wasn't included. California's legal cannabis industry cannot withstand a more than 25% tax increase when sales have already declined by 19% and thousands of businesses have closed their doors. 

This fight is far from over. CaCOA is mobilizing immediately with Assemblymember Matt Haney and coalition partners to ensure the tax freeze is included in the final budget through trailer bill legislation. Raising taxes on a struggling industry—especially one already undercut by untaxed, unregulated operators—defies economic sense and contradicts Proposition 64's core intent."

• Amy O'Gorman Jenkins, Executive Director of the California Cannabis Operators Association.

Learn more about AB 564. 

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