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KRON: Newsom reduces cannabis tax in California to compete with illegal market
- Laura Braden
- Sep 22
- 1 min read
EXCERPT:
Governor Gavin Newsom signed a bill Monday reducing California’s cannabis tax from 19% to 15%, effective until 2028. The tax reduction aims to support the legal cannabis market by making regulated products more competitive against illegal sources.
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“Certainly it is a win,” said Amy O’Gorman-Jenkins, Executive Director of the California Cannabis Operators Association, who supports further tax reductions. The tax increase on July 1 led to a noticeable impact on revenue for dispensaries like those operated by Pearson.
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Governor Newsom’s goal with the tax reduction is to help the legal market grow while ensuring customers have access to safe products.
O’Gorman-Jenkins highlighted the need for the legal industry to compete better by lowering prices, as cannabis remains the highest taxed, age-restricted product in the state.
With the tax decrease taking effect on October 1st, cannabis buyers in California can expect to see lower prices in stores, potentially boosting the legal market.
