NEWS & RESOURCES

Without legislative intervention, this tax hike will accelerate the collapse of California’s regulated cannabis market, harming consumers, public health, and ironically, the state’s bottom line.

“We're thrilled to report that all of our priority bills moved forward,” said Amy O’Gorman Jenkins, Executive Director of CaCOA. “This is a huge accomplishment that reflects the power of unified advocacy, strong partnerships, and sound policy."

The letter’s authors wrote that they support Newsom’s budget proposal that would shift funding for illicit market enforcement from fees on legal operators to excise taxes, but asked that the state’s government also freeze the excise tax at 15 percent.

“Even if we suffered a 10% reduction in sales as an industry, that at 19% tax, the state would actually end up losing money. And we feel with almost near certainty that an increase in the tax rate will further push folks from shopping in the licensed and legal market to the illicit, unlicensed market."

California cannabis excise tax: With the July 1 deadline approaching rapidly, incorporating this freeze into the budget process represents the most expedient and responsible path forward. This approach aligns perfectly with the Governor's enforcement proposals, outlined in his May Revise, by ensuring we don't simultaneously make the regulated market less competitive.

"This fight is far from over," CaCOA said in a statement. "We're working to ensure the freeze is included in the final budget through trailer bill legislation."