NEWS & RESOURCES

EXCERPT: “If the Governor receives a proposal to halt the cannabis excise tax increase, he will sign it. His record speaks for itself —...

Without immediate action by the California State Senate, the cannabis excise tax will automatically increase over 25% (from 15% to 19%) on July 1—a price hike for consumers that could be catastrophic for California’s regulated cannabis market.

It has been observed that the power to tax is the power to destroy, and California’s state and local officials are testing that truism in an attempt to destroy the cannabis industry.

“This is a full-blown warning sign, not a seasonal low. Operators are saying they can’t compete with high taxes. The situation is dire. Retailers are dropping prices in order to compete,” said Amy O’Gorman Jenkins re: cannabis tax revenue.

Thanks to consistent advocacy by CaCOA and our members, the DCC has taken a thoughtful and practical step to ensure cannabis infused product sales remain compliant and manageable for retailers across the state.

As California grapples with budget pressures and the need for tax revenue, the cannabis industry's message is clear: sustainable revenue requires a sustainable industry, and that means policies that allow legal operators to compete effectively against their illicit counterparts.