Bill Reverses 25% Cannabis Tax Hike in California
- barneyelias0
- 2 hours ago
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OG Article By Tim Fang Watch Today's LIVE Episode on X and Rumble
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September 15 2025
Overview
A bill reversing a 25% tax increase on California's legal cannabis industry awaits Gov. Gavin Newsom's approval. The legislature passed Assembly Bill 564, proposed by Asm. Matt Haney (D-San Francisco).
Legislative Progress
Senate Vote: 39-1 on Wednesday.
Assembly Vote: 74-0 in June.
Purpose
AB564 halts a July tax hike, keeping the cannabis excise tax at 15% until July 2028.
Industry Impact
High taxes, up to 45% in some areas, weaken California's legal cannabis market. The black market thrives as sales lag behind states like Colorado and Michigan.
Statements
Asm. Matt Haney: "Adding costs to our cannabis industry, which attracts millions of visitors, makes no sense."
Amy O'Gorman Jenkins, California Cannabis Operators Association: "Smart policy grows revenue by keeping the legal market viable. This fulfills Proposition 64’s promise of safe, regulated products and sustainable tax revenue."
Background
Proposition 64, passed in 2016, legalized recreational cannabis use and set a 15% excise tax.
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