--- title: Bill Passed to Pause Tax Hike on Cannabis description: California Assembly pause tax hike on cannabis to support struggling businesses and maintain the state's cannabis culture. image: https://420intel.com/hubfs/AI-Generated%20Media/Images/The%20image%20depicts%20a%20vibrant%20California%20landscape%20under%20a%20clear%20blue%20sky%20with%20rolling%20hills%20dotted%20with%20lush%20green%20marijuana%20plants%20swaying%20gently%20in%20the%20breeze%20In%20the%20foreground%20a%20diverse%20group%20of%20peoplemen%20and%20women%20of%20various%20ages%20and%20ethnicitiesga.jpeg --- [![420intel.com](https://420intel.com/hs-fs/hubfs/Asset%2016-1.png?width=300&height=162&name=Asset%2016-1.png "420intel.com")](https://420intel.com) - [Home](https://420intel.com) - [Advertise](https://420intel.com/advertise) - [Directory](https://420intel.com/directory) - [Topics](https://420intel.com/blog) - [Recreational News](https://420intel.com/blog/tag/recreational-cannabis-news) - [Business News](https://420intel.com/tag/cannabis-business-news) - [Politics](https://420intel.com/tag/cannabis-politics) - [Technology](https://420intel.com/tag/cannabis-technology-news) - [Research](https://420intel.com/tag/medical-cannabis-news) - [Contact](https://420intel.com/contact-us) - [Follow us on Facebook](https://www.facebook.com/420intel) - [Follow us on LinkedIn](https://www.linkedin.com/company/420-intel/) - [Follow us on Twitter](https://x.com/420intel) - [Follow us on Instagram](https://www.instagram.com/420intel) ### Press ESC to close [![420intel.com](https://420intel.com/hs-fs/hubfs/Asset%2016-1.png?width=300&height=162&name=Asset%2016-1.png "420intel.com")](https://420intel.com) - [Home](https://420intel.com) - [Advertise](https://420intel.com/advertise) - [Directory](https://420intel.com/directory) - [Topics](https://420intel.com/blog) - [Recreational News](https://420intel.com/blog/tag/recreational-cannabis-news) - [Business News](https://420intel.com/tag/cannabis-business-news) - [Politics](https://420intel.com/tag/cannabis-politics) - [Technology](https://420intel.com/tag/cannabis-technology-news) - [Research](https://420intel.com/tag/medical-cannabis-news) - [Contact](https://420intel.com/contact-us) - [Follow us on Facebook](https://www.facebook.com/420intel) - [Follow us on LinkedIn](https://www.linkedin.com/company/420-intel/) - [Follow us on Twitter](https://x.com/420intel) - [Follow us on Instagram](https://www.instagram.com/420intel) # Bill Passed to Pause Tax Hike on Cannabis - [![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=80&height=80&name=Buzz-No%20Outline-2.png) Buzz](https://420intel.com/blog/author/buzz) - [Cannabis Laws](https://420intel.com/blog/tag/cannabis-laws) - 5 June 2025 The California State Assembly unanimously voted on Monday to halt a slated 25% tax increase on the cannabis industry from going into effect on July 1. In a 74-0 vote, the Assembly approved AB564 by Asm. Matt Haney (D-San Francisco). The bill would prevent the retail excise tax from increasing to 19% from its current 15%. "If we continue to pile on more taxes and fees onto our struggling small cannabis businesses, California's cannabis culture is under serious threat of extinction," Haney said in a statement. According to SFGATE, taxable cannabis sales in California amounted to $1.088 billion in 2025’s first quarter, the lowest in five years.   Retailers are responsible for paying the tax regardless of consumer sales. Haney attributes the steady growth of cannabis sales in other states, such as Colorado and Michigan, to lower taxes and fewer barriers for businesses and consumers. "If we want to support our cannabis industry that drives millions of visitors to California every year, adding more costs makes absolutely no sense," said Haney. "Nearly a decade after Californians overwhelmingly approved cannabis legalization, the industry is struggling under the crushing weight of a 15% excise tax,” said Caren Woodson, president of the California Cannabis Industry Association. “Any increase, particularly a 25% increase, would not only be bad public policy, but devastating to operators already on the brink.”   In 2016, voters passed Proposition 64 to legalize the possession, cultivation and sale of cannabis for recreational use with an initial retail excise tax of 15%.   A 2022 law eliminated California’s cultivation tax, making the excise tax adjustable to generate equivalent revenue. The new bill would eliminate the law’s requirement to adjust the excise tax rate. AB564 will go to the State Senate for consideration.     [by Los Angeles Magazine](https://lamag.com/news/california-state-assembly-approves-bill-pausing-tax-hike-on-legal-cannabis-retailers) [Cannabis Laws](https://420intel.com/blog/tag/cannabis-laws) ![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=200&height=200&name=Buzz-No%20Outline-2.png) #### [Buzz](https://420intel.com/blog/author/buzz) At 420 Intel, we cover cannabis legalization news throughout the world, offer reliable information for cannabis business owners, detail technological advances that impact the marijuana industry, cover marijuana rallies from across the globe, and everything in between. - - - [Recreational Cannabis News](https://420intel.com/blog/tag/recreational-cannabis-news) [![Iconic Dispensary Sets New York Milestone](https://420intel.com/hs-fs/hubfs/AdobeStock_225736652.jpeg?width=550&height=395&name=AdobeStock_225736652.jpeg)](https://420intel.com/blog/historic-first-cannabis-dispensary-unionized-in-nyc) - [![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=80&height=80&name=Buzz-No%20Outline-2.png) Buzz](https://420intel.com/blog/author/buzz) - 26 October 2025 #### [Iconic Dispensary Sets New York Milestone](https://420intel.com/blog/historic-first-cannabis-dispensary-unionized-in-nyc) UPPER EAST SIDE, NY — The Herbal Care, a locally owneddispensaryon Lexington Avenue, recently... [Cannabis Business News](https://420intel.com/blog/tag/cannabis-business-news) [!['We kid you not': WSJ gives California tax proposal a heavy eye roll](https://420intel.com/hs-fs/hubfs/AI-Generated%20Media/Images/The%20image%20depicts%20a%20bustling%20street%20scene%20in%20San%20Francisco%20where%20a%20vibrant%20cannabis%20dispensary%20stands%20prominently%20on%20the%20corner%20The%20shops%20colorful%20signage%20boasts%20a%20variety%20of%20cannabis%20products%20with%20large%20windows%20displaying%20neatly%20arranged%20merchandise-3.jpeg?width=550&height=395&name=The%20image%20depicts%20a%20bustling%20street%20scene%20in%20San%20Francisco%20where%20a%20vibrant%20cannabis%20dispensary%20stands%20prominently%20on%20the%20corner%20The%20shops%20colorful%20signage%20boasts%20a%20variety%20of%20cannabis%20products%20with%20large%20windows%20displaying%20neatly%20arranged%20merchandise-3.jpeg)](https://420intel.com/blog/we-kid-you-not-wsj-gives-california-tax-proposal-a-heavy-eye-roll) - [![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=80&height=80&name=Buzz-No%20Outline-2.png) Buzz](https://420intel.com/blog/author/buzz) - 28 March 2025 #### ['We kid you not': WSJ gives California tax proposal a heavy eye roll](https://420intel.com/blog/we-kid-you-not-wsj-gives-california-tax-proposal-a-heavy-eye-roll) One San Francisco politician’s attempt to save the struggling California cannabis industry has... [Recreational Cannabis News](https://420intel.com/blog/tag/recreational-cannabis-news) [![Celebrate D.C.’s Star-Studded Cannabis Festival!](https://420intel.com/hs-fs/hubfs/AI-Generated%20Media/Images/The%20image%20depicts%20a%20vibrant%20outdoor%20festival%20scene%20at%20RFK%20Stadium%20Festival%20Grounds%20in%20Washington%20DC%20bustling%20with%20energy%20and%20excitement%20Large%20crowds%20of%20diverse%20attendees%20some%20adorned%20with%20colorful%20clothing%20and%20accessories%20gather%20around%20various%20booths.jpeg?width=550&height=395&name=The%20image%20depicts%20a%20vibrant%20outdoor%20festival%20scene%20at%20RFK%20Stadium%20Festival%20Grounds%20in%20Washington%20DC%20bustling%20with%20energy%20and%20excitement%20Large%20crowds%20of%20diverse%20attendees%20some%20adorned%20with%20colorful%20clothing%20and%20accessories%20gather%20around%20various%20booths.jpeg)](https://420intel.com/blog/celebrate-d.c.s-star-studded-cannabis-festival) - [![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=80&height=80&name=Buzz-No%20Outline-2.png) Buzz](https://420intel.com/blog/author/buzz) - 5 June 2025 #### [Celebrate D.C.’s Star-Studded Cannabis Festival!](https://420intel.com/blog/celebrate-d.c.s-star-studded-cannabis-festival) The cannabis industry has long had an equity problem.  - [Follow us on Facebook](https://www.facebook.com/420intel) - [Follow us on LinkedIn](https://www.linkedin.com/420intel) - [Follow us on Twitter](https://twitter.com/420intel) - [Follow us on Instagram](https://www.instagram.com/420intel) Back to Top ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Buzz", "url" : "https://420intel.com/blog/author/buzz" }, "dateModified" : "2025-06-05T13:00:03.166Z", "datePublished" : "2025-06-05T13:00:03.000Z", "headline" : "Bill Passed to Pause Tax Hike on Cannabis", "image" : [ "https://420intel.com/hubfs/AI-Generated%20Media/Images/The%20image%20depicts%20a%20vibrant%20California%20landscape%20under%20a%20clear%20blue%20sky%20with%20rolling%20hills%20dotted%20with%20lush%20green%20marijuana%20plants%20swaying%20gently%20in%20the%20breeze%20In%20the%20foreground%20a%20diverse%20group%20of%20peoplemen%20and%20women%20of%20various%20ages%20and%20ethnicitiesga.jpeg" ], "mainEntityOfPage" : { "@id" : "https://420intel.com/blog/bill-passed-to-pause-tax-hike-on-cannabis", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://420intel.com/hubfs/Asset%2016.png" }, "name" : "420 Intel" } } ```