Members of the California Assembly and Senate have approved Assembly Bill 564, which halts a recently-enacted excise tax hike on commercially available cannabis products. The measure now awaits action from Democratic Gov. Gavin Newsom, who is anticipated to sign it into law.
California NORML is among the advocacy organizations that spearheaded the bill. 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 role 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.”
The measure rolls back a 25 percent tax hike that took effect on July 1st. It also pauses future tax hikes until June 30, 2028.
Earlier this year, Maryland lawmakers approved a budget bill increasing the special sales tax imposed upon cannabis-related goods from 9 percent to 12 percent. In June, Minnesota lawmakers approved a similar tax hike.
NORML has criticized these and other exorbitant tax hikes on adult-use cannabis products. NORML’s Deputy Director Paul Armentano said: “Consumers in many legal states already pay artificially high prices for retail cannabis products. Imposing additional taxes on these goods undoubtedly drives prices out of reach for some consumers. This pushes consumers back to the unregulated market, thereby undermining the primary goal of legalization, which is to provide adults with safe, affordable, above-ground access to lab-tested products of known purity, potency, and quality.”
Additional information is available from California NORML.
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