California’s cannabis tax revenue decreased in the first quarter of 2025.

The big picture: The California Department of Tax and Fee Administration (CDTFA) reported that the total first quarter returns is $237.4 million. • That total was comprised of $140.6 million from the cannabis excise tax and $96.8 million of the sales tax.

State of play: The department also announced that the fourth quarter returns from last year have been revised to $255.5 million. • That is up from $219 million, which was the lowest quarter for the state’s cannabis tax revenue since the start of 2020. Every quarter since the first quarter of 2020 has reported at least $249 million in tax revenue. As it stands now, the first quarter revenue from this year is now the single-lowest quarter in five years. • Cali

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