Cannabis: excise tax: rate increase suspension: report.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Chaptered
Take action
Record your position on this measure.
Create an account to record your position, submit testimony, or contact your legislator.
Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill adjusts the cannabis excise tax rate in California. Initially, it temporarily increases the rate to 19% from July 1, 2025, to September 30, 2025. Then, it lowers the rate to 15% from October 1, 2025, to June 30, 2028. After 2028, the tax rate will revert to a formula based on revenue collected prior to the discontinuation of the cultivation tax. The bill also requires the Department of Cannabis Control to submit a report to the Legislature by October 1, 2027, analyzing the impact of the tax law and recommending potential changes.
Key provisions
- Temporarily increases the cannabis excise tax rate to 19% from July 1, 2025, to September 30, 2025.
- Lowers the cannabis excise tax rate to 15% from October 1, 2025, to June 30, 2028.
- Requires the CDTFA to adjust the excise tax rate after 2028 based on revenue from the previous cultivation tax.
- Mandates a report from the DCC to the Legislature by October 1, 2027, analyzing the tax law's impact and recommending changes.
- Establishes performance indicators and data collection requirements for the cannabis excise tax.
- Includes provisions related to trade samples and medicinal cannabis donations.
- Requires the cannabis retailer to provide an invoice to the purchaser.
- Specifies that the cannabis excise tax is in addition to sales and use taxes.
Who is affected
- Cannabis retailers
- Cannabis purchasers
- The California Department of Cannabis Control (DCC)
Bill text
Read the latest version inline or switch to a previous version.
Text extraction is in progress. View the official source.
Sponsors
Official sponsors from legislative records.
3 on record
Primary sponsor
Cosponsors
Arguments
Reasons offered for and against this legislation.
Arguments in favor
No arguments in favor have been submitted.
Submit yoursArguments opposed
No arguments opposed have been submitted.
Submit yours