California Advances Bill to Delay Cannabis Excise Tax Increase

California’s excise tax on cannabis would not increase above the current 15% until at least 2030 under a bill the Assembly passed 55-0 on Monday.

Assemblyman Matt Haney (D) said the bill (A.B. 564) would help the legal cannabis industry by delaying a tax increase scheduled to occur later this year. The legal cannabis industry, which is subject to a patchwork of state and local taxes and fees, makes up 40% of the state market, while the underground, illegal market makes up 60% of it, he said.

• “This tax increase would be an extinction event for many in ...