California Lawmakers Band Together to Block Major 25% Cannabis Tax Increase: A Victory for Consumers!

In a crucial turn for California’s struggling cannabis industry, lawmakers cast a unanimous vote on Monday to halt an impending 25% tax increase, which threatened to exacerbate the difficulties faced by legal cannabis operators amid stiff competition from unregulated sources. The Assembly overwhelmingly endorsed Bill AB564 with an impressive 74-0 vote, led by Assemblymember Matt Haney (D-San Francisco). This new legislation postpones the substantial tax raise scheduled for July 1, as local cannabis businesses continue to face dwindling sales and tax revenues. Haney argued that high taxation undermines California's cannabis heritage, driving consumers back to illicit markets. He highlighted the contrast with Michigan’s thriving market, which benefits from lower taxes. As AB564 moves to the State Senate, its outcome could significantly alter California’s legal cannabis framework for the foreseeable future.