The 2022–23 state budget that Governor Gavin Newsom signed into law allowed for a significant change in cannabis taxes that the industry had long desired.
The completed budget repeals the state cultivation tax on marijuana and maintains the current 15 percent excise tax for a minimum of three years.
In California, legal marijuana firms frequently grumble about taxes, but up until this year, efforts to reduce state tax rates had been unsuccessful.
Despite certain proposed tax reforms that would have further reduced marijuana taxes, such as cutting the excise tax to 5%, industry lobbyists were able to block a plan to raise the excise tax permanently rather than temporarily capping it.
While some in the sector remain afraid that the excise tax may be increased in 2025 when the cap expires, others are jubilant, according to the North Bay Business Journal.
