The Marijuana Herald – Marijuana news and information
California’s marijuana excise tax is set to rise from 15% to 19% on Tuesday, July 1.
The automatic hike was triggered by a decline in cannabis excise revenue, despite industry warnings that the increase will further burden legal businesses already struggling to compete with the illicit market.
The California Department of Tax and Fee Administration confirmed the change last month, citing statutory requirements. Industry leaders, however, have been urging lawmakers to intervene, with some warning the tax hike could devastate the state’s licensed marijuana sector. Assembly Member Matt Haney has been leading a legislative effort to prevent the increase. His bill, AB 564, would freeze the excise tax at 15%, but despite passing the Assembly 74 to 0, it has not yet received a vote in the Senate. Even if signed into law, the measure would not take effect until January 1, 2026.
A last-ditch attempt to insert a tax freeze into the state’s $321 billion budget package failed earlier this week, reports MJBizDaily. Although Governor Gavin Newsom and Assembly Speaker Robert Rivas reportedly supported including the freeze in the budget trailer bill, the proposal was ultimately rejected by Senate President Pro Tempore Mike McGuire…