Taxes on retail pot, but no revenue from homegrown? Do we have revenuer cops and homegrown permits on the horizon?
Governor Gavin Newsom signed a bill on Monday to roll back cannabis excise taxes. The bill, AB 564, undoes a hike from this summer when rates jumped from 15% to 19%. Starting October 1, the excise tax will drop back down to 15% and remain there through 2028.
Critics warn that lowering the tax could shrink funding for programs like childcare, education, and community reinvestment.
Andrew Castro, a cannabis consumer, expressed concern, saying, “I’m just kind of a weary, you know, that it’s going to tip over on the other end. In other areas for sure.”
For cannabis shops and growers, the tax cut means survival. Many argue that the state’s high taxes push customers to the illicit market, where products aren’t tested or regulated.
