California: Help stop the planned cannabis sales tax increase

A California Assembly bill introduced this session (AB564) would stop the cannabis sales tax increase that is set to bump the current 15% excise tax up to 19%. This tax hike would likely crush many already struggling cannabis businesses financially. If passed, the bill would be effective immediately, ensuring the tax jump to 19% will not take place.

If you live in California, act now and ask legislators to repeal the biennial cannabis tax rate increase!

A bill enacted in 2022 eliminated a cultivation excise tax and required the California Department of Tax and Fee Administration to adjust the excise rate every two years to account for the added revenue that would have been generated by the cultivation tax. AB564 would stop both this year’s tax increase and planned biennial hikes in the future.

Excessive tax rates would damage the legal, regulated cannabis market, which is struggling to compete with the unregulated, untaxed cannabis market and intoxicating hemp. In 2023, a little over 15% of cannabis business operators defaulted on their taxes.