In a significant move for the state’s beleaguered cannabis industry, California lawmakers on Monday voted unanimously to pause an impending 25% tax increase that threatened to exacerbate existing challenges faced by legal cannabis businesses struggling to compete with the black market.*

In a striking 74-0 vote, the Assembly approved Bill AB564, introduced by Assemblymember Matt Haney (D-San Francisco). The legislation effectively prevents the substantial tax increase, set to take effect on July 1, from being imposed during a time when local cannabis businesses are already seeing a sharp decline in sales and tax revenue.

“If we continue to pile on more taxes and fees onto our struggling small cannabis businesses, California’s cannabis culture is under serious threat of extinction,” Haney

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