SACRAMENTO – The California Department of Tax and Fee Administration announced on May 1 that the Cannabis Excise Tax will be adjusted from the current 15% to 19% in accordance with the “AB 195 Compromise” that resulted in the elimination of the voter-enacted Cannabis Cultivation Tax. The Excise Tax adjustment is part of the AB 195 compromise and will take effect on July 1st to help replace hundreds of millions of dollars in revenues lost when the Legislature repealed the voter-created Cannabis Cultivation Tax in 2022.
“This is a simple choice between protecting our kids and the environment or increasing cannabis industry profits. Thousands of children lost childcare opportunities when the Legislature abolished the Cultivation Tax in 2022. The Excise Tax adjustment repairs some of
