NEWS & RESOURCES

“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."

California's legal cannabis industry cannot withstand a more than 25% tax increase when sales have already declined by 19% and thousands of businesses have closed their doors.

The conversation focused on protecting cannabis consumers and patients, who will ultimately bear the tax increase during challenging economic times. Jenkins explained how the tax increase threatens public health and safety by driving Californians to dangerous products in the unregulated market.

CaCOA's expanding membership reflects the growing collective strength of California's licensed cannabis industry.