.png)
CBS 13: Gov. Newsom reverses 25% tax hike on California cannabis industry
- Laura Braden
- Sep 23
- 1 min read
EXCERPT:
"The legal cannabis industry is in crisis," said Amy Jenkins, executive director of the California Cannabis Operators Association. "There were already consumers that weren't shopping at legal stores because they didn't want to pay up to 40-50% in taxes versus what they would see at illegal stores."
The law not only cancels the planned tax hike but also locks in the state's excise tax rate at 15% through 2028. Industry leaders say the goal is to bring prices down and win customers back from the illicit market. The change comes as a special state task force continues to crack down on illegal cannabis. Since 2022, enforcement efforts have destroyed nearly $900 million worth of illegal products.
...
State officials argue that the long-term stability of the cannabis market is the best way to protect those programs. Jenkins agreed saying, "Until we can get to that point, where our businesses are thriving, you're never going to see stable tax revenue to fund these nonprofit programs, which I acknowledge are very important."
