NEWS & RESOURCES

With the tax decrease taking effect on October 1st, cannabis buyers in California can expect to see lower prices in stores, potentially boosting the legal market.

Today, Governor Gavin Newsom signed legislation, Assembly Bill 564 (Haney), that eliminates a 25% tax increase on California’s legal...

Only 40% of cannabis consumed in California comes from licensed dealers, according to the state Department of Cannabis Control. Lawmakers, including the governor, argued that lowering the state tax would help stem closures and bankruptcies of legal businesses and help them regain enough of a foothold to compete with the illicit market.

Lawmakers gave final approval to the bill last week, sending the measure to the desk of Newsom, who has previously committed to signing it into law. The measure would drop the state excise tax on cannabis from 19% to 15% on Oct. 1 and maintain that tax rate until June 30, 2028.

“AB 8 seeks to protect public health by eliminating access to intoxicating hemp products outside of authorized dispensaries,” she said. “[The bill] will give state agencies and local governments the tools they need to protect our kids from synthetic products.”

AB 8 protects consumers from potentially harmful synthetic compounds, and it strengthens California's regulated cannabis market by ensuring all intoxicating products meet the rigorous safety standards voters demanded when they passed Proposition 64. We're proud to have championed this common-sense measure.