Members of the state assembly voted 74 to zero on Monday in favor of AB 564, which halts a pending excise tax hike on commercially available cannabis products. The measure now goes to the Senate for further consideration. Advocates are hopeful that lawmakers will separately address the issue in this year’s state budget.
As introduced, the bill repealed plans to increase the excise tax on cannabis products from 15 percent to 19 percent. As amended and passed by the assembly, the measure delays implementation of the tax increase until 2030.
If no further action is taken by lawmakers, the increase takes effect on July 1st of this year.
California NORML is among the advocacy organizations spearheading the effort to roll back the tax hike. In March, it coordinated a lobby day and press conference at the state capital in support of AB. 564 — which is also backed by the United Food and Commercial Workers – Western States Council, the California Cannabis Industries Association, and other groups.
“California NORML is proud to have taken a leadership roll sponsoring this bill,” California NORML Coordinator Dale Gieringer said. “Cannabis is already heavily over-taxed relative to comparable products like beer, wine, and tobacco in California.”
He added: “With our wind at our backs, we’re urging the joint assembly and budget committees to act quickly to incorporate AB 564 to the budget trailer bill, which would allow it to take effect prior to July 1, 2025. Otherwise, if AB 564 follows the traditional legislative path in the senate, it won’t take effect until January 1, 2026 — leaving higher taxes in place until then.”
In an action alert that has been shared over 6,000 times with lawmakers, California NORML emphasizes that commercially available cannabis products are already taxed at rates that are more than 8 times higher than tobacco products and 15 times higher than liquor.
Several other states — including Michigan, Minnesota, New Jersey, are considering imposing significant tax hikes on legally available marijuana products. Earlier this year, Maryland lawmakers approved a budget bill increasing the special sales tax imposed upon cannabis-related goods from the cannabis sales tax from 9 percent to 12 percent.
Are you among the tens of thousands of reform advocates who have contacted their elected officials this year? A state-by-state guide to pending marijuana legislation and NORML action alerts is available from NORML’s Take Action Center.
Related
Medical Disclaimer:
The information provided in these blog posts is intended for general informational and educational purposes only. It is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or other qualified healthcare provider with any questions you may have regarding a medical condition. The use of any information provided in these blog posts is solely at your own risk. The authors and the website do not recommend or endorse any specific products, treatments, or procedures mentioned. Reliance on any information in these blog posts is solely at your own discretion.
