California Gov. Gavin Newsom signed a bill on Monday to roll back a planned tax increase on the state's legal cannabis industry in an effort to bolster the market and ensure its long-term success.

AB 564 will not only reverse a scheduled 25% tax increase on the cannabis industry but also set the state’s cannabis excise tax rate at 15% until 2028, a news release from the Governor's Press Office stated.

“We’re rolling back this cannabis tax hike so the legal market can continue to grow, consumers can access safe products, and our local communities see the benefits,” Newsom said.

In addition to the tax break, Newsom's administration has also taken measures to increase enforcement efforts against illegal operators.

Since 2022, the Unified Cannabis Enforcement Taskforce (UCETF) has seized a

See Full Page