Three months into a major marijuana tax hike in California, a new law putting a pause on the increase has officially taken effect.
Gov. Gavin Newsom (D) signed the tax relief legislation from Assemblymember Matt Haney (D) late last month. Now, as of Wednesday, consumers will not be paying the increased excise tax—at least until October 2028.
“We’re rolling back this cannabis tax hike so the legal market can continue to grow, consumers can access safe products, and our local communities see the benefits,” Newsom said at the time of the bill signing.
Haney said that “California’s cannabis economy can bring enormous benefits to our state, but only if our legal industry is given a fair chance to compete against the untaxed and unregulated illegal market.”
“AB 564 helps level the playing field,” he said. “It protects California jobs, keeps small businesses open, and ensures that our legal cannabis market can grow and thrive the way voters intended.”
State officials announced in June that the cannabis excise tax rate would increase from 15 percent to 19 percent on July 1, prompting concern from industry stakeholders and consumer advocates.
Newsom previously supported including a tax freeze in a budget trailer bill,
Read full article on Marijuana Moment
