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California reports record illicit cannabis seizures as cultivation tax cut

California law enforcement reported seizing and destroying a record 377,010 pounds of illicit cannabis worth $609 million in 2025, Gov. Gavin Newsom’s office said Tuesday.

But with illegal cultivation outpacing the regulated market by nearly a factor of 10, more drastic action than further tax cuts might be needed to rescue beleaguered small cannabis farmers.

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The country’s most populous state, California is still home to the U.S.’s largest single cannabis market despite constant complaints from operators about shrinking margins – and, last year, a shrinking market – amid illicit-market competition.

Legal sales dipped to a five-year low last year, a decrease blamed mostly on a short-lived tax hike that’s since been repealed.

However, it remains to be seen whether that will

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