California Wants to Raise the Weed Tax Again?! Here’s What’s Really Going On

Alright. Let’s talk about what everyone in the California cannabis scene has been side-eyeing recently: that spicy little cannabis excise tax hike. Yep. They’re trying to raise it from 15% to 19%, and no, that’s not a typo. That’s an actual 4% punch to the wallet of anyone who shops legally.

Wait, Why Though?

Yeah, we’re wondering the same thing.

According to the state, the tax hike is part of their “scheduled adjustment.” But here’s the reality, Californians are already dealing with insane living costs, and now the state wants them to pay even more just to access safe, tested, legal cannabis?

Amy O’Gorman Jenkins, Executive Director of the California Cannabis Industry Association (CaCOA), said it best:

“The state Senate has decided that Californians should pay more for safe, tested cannabis at the exact moment families are being forced to cut back on virtually everything else… This short-sighted decision will push more Californians toward dangerous illicit products, hurt public health, and ironically cost the state millions in lost tax revenue.”

Translation? It’s a lose-lose for everyone: consumers, dispensaries, and even the programs funded by cannabis taxes, like youth drug prevention and community reinvestment.

All this during a cost-of-living crisis. Seriously?

But There’s Hope: AB 564 Might Save the Day 🙏

Say hello to AB 564: the chillest bill on the block. It aims to keep the excise tax at 15% and not make life harder for small businesses and everyday customers. It’s already passed the Assembly and is now waiting on the Senate to get their stuff together.

Even Governor Newsom is on board, urging lawmakers to freeze the tax hike before it makes things worse. But here’s the twist, if the Senate doesn’t vote on time, they might have to sneak this fix into the upcoming budget bill. (Classic Sacramento politics.)

Why It Matters (and Why You Should Care)

When taxes go up, prices go up. That means you pay more, and we lose customers to that guy your cousin knows who sells from his trunk. (No hate, but also, yikes.)

Higher taxes also mean:

• More pressure on legal dispensaries
• Fewer deals for you (because margins get tighter than your favorite pre-roll)
• A boost to the unlicensed market, which literally goes against everything we’re trying to do here

So yeah. It’s kind of a big deal.

What’s Next?

If nothing changes, the 19% tax is already in effect. BUT! AB 564 is still alive and breathing. A Senate tax committee will vote on it on July 9, so keep those fingers crossed, spark one for the Senate, and maybe light some sage while you’re at it. We’re manifesting change over here.

We’ll keep y’all posted on what happens next. In the meantime, swing by the shop, grab your favorites while the deals still hit, and know that your support actually makes a difference.

TL;DR – Quick Hits

• CA bumped cannabis excise tax from 15% → 19% as of July 1
• AB 564 aims to freeze the tax at 15%, still waiting for Senate approval
• Even Gov. Newsom supports the freeze
• Vote set for July 9
• Higher taxes = more pressure on legal shops + more love for the illicit market
• We’re rooting for the freeze and still serving the fire every day

Want to Do Something About It?

If you’re reading this and thinking, “Yo, this tax hike is trash,” you’re not alone. The good news? There’s something you can do.

Sign the petition urging Governor Gavin Newsom to address cannabis tax reform in California. It’s quick, easy, and sends a clear message that this community isn’t just gonna sit back and let legal shops get crushed.

👉 Sign the petition on Change.org

Let’s remind lawmakers that supporting the cannabis industry means keeping it accessible, affordable, and legal. We’re doing our part, now’s your chance to roll up and join the movement.

Support local. Stay informed. Shop smart. Stay legal.

– Your friends at Vallejo Relief Center