Governor Newsom has signed the Cal NORML-sponsored bill, AB 564 (Haney), to roll back the cannabis excise tax increase that happened on July 1 from 19% back to 15% on October 1, 2025.

Thanks to all Cal NORML’s supporters who helped lobby for the bill (including at our Lobby Day in March), and all who wrote letters via Cal NORML’s Action Network.

Support Cal NORML’s efforts to stop a tax increase in California by making a membership donation today! Business Memberships starting at $50 monthly include a directory listing and other perks.

Cal NORML put out word through our email alert list this week asking cannabis consumers and businesses to tell us about the initial impacts of the 26% excise tax increase that hit cannabis in California on July 1. Several consumers and businesses reported damaging repercussions; some of the responses are below.

“To be honest even the old tax had me wanting to go back to the black market but with the new tax it’s even more likely that I will start looking to get my cannabis from some place cheaper,” wrote one consumer.…

UPDATE July 9, 2025 – On the 50th anniversary of cannabis decriminalization in California, AB 564 passed through the Senate Revenue and Tax committee, its first stop in the Senate after passing in the Assembly by a vote of 74-0. An amendment would roll the tax back from 19% (enacted on July 1) back to 15% on October 1.

WRITE TO YOUR LEGISLATORS AND GOV. NEWSOM AND ASK THEM NOT TO RAISE CANNABIS TAXES IN 2025

Update 5/8/2025 – AB 564, to halt a cannabis tax increase this year, passed through its second committee with another unanimous vote. It now goes to Assembly Appropriations. Meanwhile, the Governor and both legislative houses are finalizing their budgets for the year.

Please take action on our new alert targeted at the full legislature and the Governor, asking them not to increase cannabis taxes in 2025.…

UPDATE 7/10/2025 – Please send a letter to your state Senator asking them to pass AB 564 to roll back cannabis taxes.

California raised its excise tax on cannabis from 15% to 19% on July 1, 2025, as part of a budget compromise made when the cannabis cultivation tax was removed via AB 195 (2022), in order to assure adequate funding for programs funded by cannabis taxes.

A bill sponsored by Cal NORML, AB 564 (Haney) would roll back this tax increase, as soon as October 1. …

DOWNLOAD A FLYER ABOUT CANNABIS TAX FAIRNESS IN CALIFORNIA

UPDATE 7/10/2023 – SB 512 (Bradford), to end double taxation on cannabis by including state and local excise taxes when calculating other taxes, was held in the Assembly Revenue and Taxation committee and will likely not advance this year in its present form.

Committee chair Jacqui Irwin, who authored a bill to make cannabis billboards illegal in 2012 and whose current bill AB 1207 to restrict cannabis packaging and flavorings was opposed by cannabis industry groups, commented at the hearing that it’s too soon to evaluate the results of AB 195 (2022), which eliminated the cannabis cultivation tax and shifted the responsibility for paying state excise tax from the distributor to the retailer, while making the changes SB 512 sought to correct.…

Newsom announced a $150 million “backfill” from the General Fund to cover any temporary tax income reductions that may affect youth, environmental, or law enforcement programs that are currently funded with Prop.…

California Should Be Reducing, Not Increasing Cannabis Taxes

Cal NORML denounced the tax hike as wrong-headed and untimely. “The legal industry is already so burdened by excessive taxes and regulation that it cannot compete with unlicensed marketers,” says California NORML Director Dale Gieringer.…