Gavin Newson's California Cannabis Tax Takes Effect - Highest Possible Taxation
California's legal cannabis industry is bracing for a significant challenge: a state-mandated excise tax increase from 15% to 19%, set to take effect on July 1, 2025. This 26.7% hike, authorized under Assembly Bill 195 signed in 2022, is triggered by declining cannabis tax revenues and aims to compensate for the shortfall. The Tax Hike: Origins and Implications The upcoming tax increase is rooted in AB 195, which eliminated the cultivation tax but included a provision to raise the excise tax if revenues fell below a certain threshold. With cannabis tax revenues declining, the California Department of Tax and Fee...
