California Marijuana Retailers Warning: New Tax Hike Threatens Their Survival

Licensed cannabis retailers throughout California are rallying behind Assembly Bill 564, introduced by Assemblymember Matt Haney (D-San Francisco). This legislation aims to halt an impending tax hike on cannabis, escalating from 15% to 19%, set to commence on July 1. Haney emphasized that further tax burdens threaten the survival of small cannabis enterprises and California’s vibrant cannabis community. Notably, illicit cannabis sales make up approximately 60% of the state's market, placing licensed businesses at a distinct disadvantage. A recent United Cannabis Business Association survey revealed that 70% of Los Angeles retailers face potential closure. Despite state funding aimed at aiding social equity initiatives, many Black business owners express frustration regarding the support received, stressing the need for legislative action to ensure viability. The bill awaits further consideration in the Assembly.