NEWS & RESOURCES

“We’re rolling back this cannabis tax hike so the legal market can continue to grow, consumers can access safe products, and our local communities see the benefits,” Newsom said in a statement.

“By stopping this misguided tax hike, the governor and Legislature chose smart policy that grows revenue by keeping the legal market viable instead of driving consumers back to dangerous, untested illicit products. This signing brings us closer to fulfilling Proposition 64’s promise: patients and consumers accessing safe, regulated cannabis while generating sustainable tax revenue for child care, youth prevention, and public health programs.”

"The legal cannabis industry is in crisis," said Amy Jenkins, executive director of the California Cannabis Operators Association. "There were already consumers that weren't shopping at legal stores because they didn't want to pay the 40-50% price increase they would see at illegal stores."

"Reducing the tax back to 15% is an effort to help level the playing field and keep legal cannabis accessible for Californians shopping at licensed dispensaries," Carpenter said.

“By stopping this misguided tax hike, the governor and Legislature chose smart policy that grows revenue by keeping the legal market viable instead of driving consumers back to dangerous, untested illicit products,” Amy O’Gorman, executive director of the California Cannabis Operators Association.

“By stopping this misguided tax hike, the Legislature recognized that smart policy grows revenue by keeping the legal market viable,” the organization said. “The passage of AB 564 proves that sound policy wins when state lawmakers listen to data over rhetoric.”