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San Bernardino Sun: Illegal cannabis is still a big problem in spite of efforts to stop it
- Laura Braden
- Jul 24
- 1 min read
EXCERPT:
According to a recent press release from the Cannabis Business Times, California’s legal cannabis market has been in steep decline since 2021, with licensed sales dropping 34% while illicit operators control an estimated 60% of total market activity.
More cannabis licenses are now inactive or surrendered (10,828) than active (8,514), representing the loss of 7,100 small farms, thousands of brands, and nearly 22,000 jobs over two years.
In response, the California Cannabis Operators Association, the state’s largest cannabis industry group, has launched an advocacy campaign in support of Assembly Bill 564, sponsored by Matt Haney, D-San Francisco, urging legislators not to raise taxes on consumers and patients.
A.B. 564 would reset the excise tax at the previous rate of 15%.
“A 25% tax hike on an industry that’s barely hanging on is a full-blown disaster, and absolutely should have been avoided,” Haney said. “Raising this tax is a slap in the face of small cannabis businesses who simply can’t afford it and are competing with an illegal market that is booming.”
The bill passed the Assembly with strong bipartisan support and is now pending in the California Senate.
