NEWS & RESOURCES

Today's passage of AB 564 proves that sound policy wins when lawmakers listen to data over rhetoric. This bill protects consumers from dangerous illicit products while preserving the tax revenue that supports essential programs like childcare and community reinvestment. (California cannabis)

he California State Senate voted 38-1 to pass Assembly Bill 564 (Haney), which rolls back the cannabis excise tax from 19% to 15% starting October 1, 2025, through June 30, 2028.

A recent op-ed opposing Assembly Bill 564 (Haney) misunderstands both Proposition 64's intent and how cannabis taxes actually work. The record deserves clarification on both the law's purpose and the economic realities facing California's legal cannabis market and community programs that rely on these tax revenues.

Amy O’Gorman Jenkins, the executive director of the California Cannabis Operators Association, said the legal cannabis industry in California is subjected to an array of taxes, noting that no other age-restricted product in the state is taxed at the same rate, including alcohol and tobacco. (Newsom, AB 564)

The California Cannabis Operators Association is thrilled to announce the Senate Appropriations Committee has passed critically important legislation (AB 8 and AB 564) to protect public health and safety and the integrity of the legal cannabis market.

The legal cannabis market is in crisis, with declining sales, widespread business closures, and plummeting tax revenue. Assembly Bill 564 (Haney) restores the excise tax rate from 19% to 15%, a critical step to protect public health and stabilize the legal market. This bipartisan legislation has received widespread support in both chambers and from Governor Newsom.