NEWS & RESOURCES

California's legal cannabis industry achieved a crucial milestone this week as both AB 564 and AB 8 passed out of the Senate Revenue and Taxation Committee with unanimous support, a testament to the collective advocacy efforts of the California Cannabis Operators Association.

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Ronald Allen, co-owner of a licensed dispensary in Bakersfield, worries the tax hike could put small businesses like his at risk. "It's affecting everybody across the board, everybody from the buyers to the growers," Allen said.

As of Tuesday, California’s cannabis excise tax has increased from 15% to 19%. It’s an adjustment that many businesses say could be detrimental to an already struggling industry.

Industry representatives warn that further raising taxes will push price-sensitive customers back into the illicit market, hurting businesses teetering on the edge and actually lowering cannabis tax revenue in the long run.