Governor Newsom Signs Legislation Cutting Taxes on Cannabis

California cannabis featurePress release from the California Governor’s Office:

As California’s legal cannabis market continues to mature, Governor Gavin Newsom [yesterday] signed legislation, AB 564 (Haney), that eliminates a 25% tax increase on California’s legal cannabis industry, building on the Administration’s ongoing work to ensure the long-term success of the legal cannabis market.

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.

Governor Gavin Newsom

“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,” said Assemblymember Matt Haney (D–San Francisco). “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.”

California’s regulated cannabis market is the largest in the world, fostering environmental stewardship, compliance-tested products, and fair labor practices, while driving economic growth and funding vital programs in education, public health, and environmental protection. AB 564 reverses a 25% tax increase on California’s legal cannabis industry and sets the state’s cannabis excise tax rate at 15% until 2028, allowing legal businesses to remain competitive and promoting the industry’s long-term growth.

The Administration recently enacted measures to bolster long-term enforcement efforts against illegal operators by dedicating cannabis tax revenue to fund civil and criminal enforcement activities. This will reduce the burden on legal businesses while ensuring sustained actions against illegal operators. In addition, Board of State and Community Corrections (BSCC) grant eligibility has expanded to local jurisdictions, especially those allowing retail access, to further enhance and support local enforcement efforts against illegal cannabis activity.

A unified strategy across California

So far, the Unified Cannabis Enforcement Taskforce (UCETF), which was established in 2022 by Governor Newsom, has seized and destroyed over 317 tons, or over 635,303 pounds, of illegal cannabis worth an estimated retail value of $890 million through nearly 230 multiagency operations.

UCETF has enhanced collaboration and enforcement coordination between state, local, and federal partners. Partners on the task force include the Department of Cannabis Control, the Department of Pesticide Regulation, the Department of Toxic Substances Control, and the Department of Fish and Wildlife, among others.

To learn more about the legal California cannabis market, state licenses, and laws, visit cannabis.ca.gov.

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18 Please improve the conversation by disagreeing thoughtfully and backing your claims with facts
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Lost Croat Outburst
Member
Lost Croat Outburst
8 months ago

Well, OK, we’ll see. It would be nice if the industry didn’t have to jump through more hoops than the NBA or a dolphin at Sea World. Access to the national electronic banking system like everybody else would help.

Farce
Guest
Farce
8 months ago

You refuse to get it. When that happens is the same time you will be completely destroyed by foreign imports. And massive federally-funded eradication. Game over.

Lost Croat Outburst
Member
Lost Croat Outburst
8 months ago
Reply to  Farce

you refuse to realize that any cannabis dispensary CANNOT use the national banking system since it’s still technically illegal under federal law. Imagine running a business strictly in cash, no bank cards allowed. No credit or debit cards allowed. Plenty of cash around for thieves. What would be the motive for federally funded eradication if bank cards were legalized? Alcohol and tobacco survive foreign imports, but not weed? I think your loathing and hatred of cannabis has clouded your thinking. Amazing how cannabis distorts and confounds the minds of those who DO NOT use it. Again and again. Thank you for confirming my hypothesis, yet again.

Mr. Clark
Member
8 months ago

Yeah let stimulate recreational drug production. Now how about eliminating CARB and fuel TAX? The rest of the country is paying $2.00 less the Kalifornia for gas.

There are some huge weed growers in the rest of california, and those boys have friends in power.

Mr. Clark
Member
8 months ago

Weed makes you lazy. You are supposed to grow your own weed, but you never see that. People dust drive to the weed store for their weed. Ridiculous.

Permanently on Monitoring
Guest
Permanently on Monitoring
8 months ago
Reply to  Mr. Clark

Well it certainly changes your perspective…

The taxes were supposed to support something, but instead, the taxes are making illegal weed more salable…

A lot of folks cruising East on HWY 20 yesterday, towing trailers…

Highway 53 South from 20 smells like super skunks, so the competition is booming…

In Lake County, they sell Ice Hash in the street… To people towing trailers…

Drugs are bad, but they are big business…

Lost Croat Outburst
Member
Lost Croat Outburst
8 months ago
Reply to  Mr. Clark

I don’t want to hurt your feelings, but it is unlikely that folks growing their own cannabis are going to make a general announcement to the public, especially to Mr. Clark. Wow! You expect to drive around and see it? Talk about ridiculous. You have no concept of who is growing their own, but you have an active imagination and distorted reasoning just thinking about . . .you guessed it … .marijuana. BTW, it takes a lot of work to grow cannabis, just like any commercial crop, especially on steep land in the mountains. Especially When we had to hide it. The examples of people who lose capacity for rational thought just thinking about cannabis keep piling up. Thank you.

Permanently on Monitoring
Guest
Permanently on Monitoring
8 months ago

Industry?

Like I predicted, the real money is in NEW drugs…

https://www.kansascity.com/news/local/article311767920.html

Get in on this now!

Espino
Guest
Espino
8 months ago

Cut taxes on fuel with winter ahead———–NO way
Cut state income taxes to help struggling families————NO way

Cut taxes to enable dope-heads—————You bet, it’s the dead donkey way

The Real Guest
Guest
The Real Guest
8 months ago
Reply to  Espino

Gavin Newsom Is All For

Election Rigging…!!!

Screenshot_20250922-213445
Mr. Clark
Member
8 months ago
Reply to  Espino

struggling families will get a voucher for fuel and rebates for income TAX. So they will be happy to vote for more idiots like newsom.

Lone ranger
Guest
Lone ranger
8 months ago

Cuts taxes on a dying industry, what a guy.

Ahuka 2400
Member
Ahuka 2400
8 months ago

These days Newsom is less interested in what’s in the best interests of Californians than he is in how these stories play in Peoria

Farce
Guest
Farce
8 months ago
Reply to  Ahuka 2400

He actually makes Trump look less terrible. And that’s saying A LOT!!

Lost Croat Outburst
Member
Lost Croat Outburst
8 months ago
Reply to  Farce

Not today he doesn’t. Yesterday was Trump’s asinine decree about Tylenol and today the USA was debased and humiliated by Trump at the UN. Plus Trump wants his critics dragged into court even with no charges, just like Putin’s Russia. Assuming American Democracy survives, Republicans will owe a huge apology to America. What’s in it for them? Honorary citizenship in the Russian Federation? Go to the head of the line of millions crowding the Russian border? ‘Splain’ that one to me, Lucy.

Radio Head
Guest
Radio Head
8 months ago

“…..And our local communities see the benefits”. – GN

Meanwhile (Southern) Humboldt is a ghost town, destroyed by him and the ways ‘his governing’ has implemented Prop 64!

FUCK NEWSOM!
and his LYING LIP SERVICE trying to be seen as a ‘good guy’ on legalization!!!

Last edited 8 months ago
Farce
Guest
Farce
8 months ago

Well…this was always the plan. First set up a playing field that destroys all small farmers and promotes corporate domination by your friends. When that has been achieved enough then lower the taxes on your friends. Textbook takeover stuff. I called this right here in RHBB comments when I begged you all to resist the corporate “legalization” scheme. It’s not rocket science- it’s all been textbook takeover strategy…Enjoy your ” freedom” and “safety” ya buncha pansies!

Lost Croat Outburst
Member
Lost Croat Outburst
8 months ago
Reply to  Farce

Yeah, “permit pansy” was your little ditty, right? You hate the plant and its people, but don’t even try to go legal. And . . . . Yup . . . .irrational thought pattern yet again and again.