California is set to increase its excise tax on cannabis from 15% to as much as 19% starting on July 1, 2025, as part of a budget compromise made when the cannabis cultivation tax was removed via AB 195 (2022), in order to assure adequate funding for programs funded by cannabis taxes.

Cannabis is already unfairly taxed vs. similar products in California. And since cannabis is also subject to sales taxes and local taxes, and these taxes are compounded at the retail level, consumers are already paying as much as 39% tax on cannabis purchased at licensed stores in our state.

High taxes and restrictive regulations are chocking the legal cannabis industry, and sending consumers back to the illicit market, where products are untested and untaxed. Medical marijuana patients in particular are affected by high taxes and a lack of diverse products that address their medical needs.

AB 564 would amend the law that requires a tax hike on cannabis in California. We need lower taxes, not higher ones.