California Cannabis Operators Praise State Senate for Stopping Excise Tax Hike

SACRAMENTO, Calif. – Today, the California State Senate voted 38-1 to pass Assembly Bill 564 (Haney), which rolls back the cannabis excise tax from 19% to 15% starting October 1, 2025, through June 30, 2028. 

In response, Amy O’Gorman Jenkins issued the following:

“Today's vote is a victory for everyone who believes in evidence-based policy. AB 564 protects public health, honors what voters wanted with Proposition 64, and safeguards the tax revenue that funds childcare and community programs.

The 27% tax hike we just stopped would have driven more consumers to dangerous, untested illicit products while reducing state revenue. Instead, the Legislature wisely chose to protect and grow cannabis tax revenues by keeping the legal market competitive.

This means patients and consumers stay in the regulated market where products are tested, tracked, and taxed, exactly as Proposition 64 intended. Beyond preserving critical funding, today shows the Legislature is listening and took action to save thousands of jobs and hundreds of small businesses hanging by a thread.

We're grateful to Assemblymember Haney and every legislator who understood that smart tax policy protects consumers, communities, and commerce.”

The Assembly now has until the end of the week to take a final concurrence vote and send it to Governor Newsom's desk, where he has committed to signing it into law.

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