California Governor Signs Bill to Halt Cannabis Excise Tax Hike | How to order Skittles Moonrock online

estimated in a March 2025 report.

This dynamic has proved problematic for California’s overtaxed cannabis operators, who, amid falling prices and declining sales figures, are on pace to provide the state $100 million less in excise tax revenue this year when compared to a market peak of $680 million in 2021, according to the California Department of Tax and Fee Administration.

In the Senate’s floor debate on A.B. 564 earlier this month, state lawmakers alluded to the idea that a lower tax burden on licensed cannabis retailers could actually net more tax revenue through grabbing a larger percentage of the market share from unlicensed operators. Under current market conditions, only about 38% of cannabis consumed each year by Californians is taxed.

During A.B 564’s committee hearings, many cannabis industry advocates said they believed there would be no industry left to tax without removing certain barriers.

Amy O’Gorman Jenkins, the executive director of the California Cannabis Operators Association, which represents more than 300 licensed operators, said Monday that the cannabis industry is grateful to Newsom for signing the legislation.

“He understood what opponents refused to acknowledge: You can’t fund social programs with revenue that doesn’t exist,” she said. “By stopping this misguided tax hike, the governor and Legislature chose smart policy that grows revenue by keeping the legal market viable instead of driving consumers back to dangerous, untested illicit products. This signing brings us closer to fulfilling Proposition 64’s promise: patients and consumers accessing safe, regulated cannabis while generating sustainable tax revenue for child care, youth prevention and public health programs.”