NEWS & RESOURCES

Today, Governor Gavin Newsom signed legislation, Assembly Bill 8 (Aguiar-Curry), establishing clear rules on how hemp should enter the licensed cannabis market while protecting our youth by keeping intoxicating hemp products out of the hands of children and ensuring those products are only sold through licensed dispensaries to qualifying adults.

“At the end of the day, you end up with a total tax burden of around 40%” when all cannabis taxes are added up, explained Tiffany Devitt, director of regulatory affairs for CannaCraft.

“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.