The governor of California has signed a bill into law to put a pause on a recently enacted tax hike on marijuana products.
Weeks after the legislature delivered the measure from Assemblymember Matt Haney (D) to his desk, Gov. Gavin Newsom (D) gave it final approval on Monday.
“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 in a press release.
The bill will pause the tax increase for five years. The governor had until October 12 to take action on any measures delivered to him this session.
“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,” Haney, the sponsor, said. “AB 564 helps level the playing field. It protects California jobs, keeps small businesses open, and ensures that our legal cannabis market can grow and thrive the way voters intended.”
JUST IN — @CAGovernor Gavin Newsom signed #AB564, which eliminates a 25% tax increase on California’s legal cannabis industry—boosting this maturing industry, & building on the
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