---
title: New Law Eases Taxes for California Cannabis Companies
description: California cannabis rolls back taxes to 15%, aiming to boost legal sales and support businesses amidst concerns over reduced funding for public programs.
image: https://420intel.com/hubfs/elsa-olofsson-uzpqxrK6t2Q-unsplash-1.jpg
---

[![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)

# New Law Eases Taxes for California Cannabis Companies

- [![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)
- 24 September 2025

California cannabis businesses are experiencing another major shift as Governor Gavin Newsom signed Assembly Bill 564, rolling back cannabis **taxes** beginning October 1. This change reverses the summer hike that raised excise **taxes** from 15% to 19%, bringing them back down to 15% through 2028. Supporters say the new policy is a lifeline for dispensaries and growers, while critics fear the loss in **tax** revenue could hurt public programs.

The California cannabis industry has been under pressure for years. High **taxes** have been blamed for pushing consumers into the unregulated market, where products are not tested or monitored. By reducing **taxes**, the state hopes to keep more shoppers at licensed dispensaries and protect thousands of jobs tied to California cannabis cultivation and retail. Many brands in the state argue that the cost burden created by high **taxes** was making it impossible to survive.

 

Lower **taxes** mean shops can offer more competitive prices, making legal products more attractive than illicit ones. This shift could strengthen the regulated market, increase safety standards, and keep small businesses afloat. For many owners, this is the relief the California cannabis industry desperately needs.

Yet not everyone is cheering. Critics of the policy warn that cutting **taxes** on California cannabis will shrink funding for key programs like childcare, education, and community reinvestment. These programs depend heavily on cannabis **tax** revenue. If the state collects less from California cannabis **taxes**, officials may have to find money elsewhere—or cut services altogether.

Still, dispensaries and growers see the measure as essential for survival. High **taxes** have long been cited as one of the biggest challenges in California cannabis. By reducing these **taxes**, the state may finally bring more businesses into compliance and shrink the black market.

California cannabis remains one of the largest regulated markets in the world, but its long-term success depends on balancing fair **taxes** with reliable funding for public services. Whether this rollback proves to be a smart move or a costly gamble will become clearer in the coming years. For now, California cannabis companies are welcoming the reduced **taxes**—and hoping this new chapter helps them thrive in a competitive industry.

 

[by Youtube](https://www.youtube.com/watch?v=NQOY342Nggc)

[Cannabis Laws](https://420intel.com/blog/tag/cannabis-laws) [Marijuana legalization](https://420intel.com/blog/tag/marijuana-legalization)

![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.

- <https://420intel.com/blog/facebook.com/420intel>
- <https://420intel.com/blog/420intel.com>
- <https://420intel.com/blog/advertising@420intel.com>

[Cannabis Laws](https://420intel.com/blog/tag/cannabis-laws) [![Californians Unaware Of Cannabis Driving Laws](https://420intel.com/hs-fs/hubfs/kevin-turcios-gc52wGQ2nP8-unsplash-1.jpg?width=550&height=395&name=kevin-turcios-gc52wGQ2nP8-unsplash-1.jpg)](https://420intel.com/blog/survey-shows-californians-unaware-of-driving-laws)

- [![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)
- 23 October 2025

#### [Californians Unaware Of Cannabis Driving Laws](https://420intel.com/blog/survey-shows-californians-unaware-of-driving-laws)

A new study from the **University of California San Diego** has shed light on widespread confusion...

[Cannabis Politics](https://420intel.com/blog/tag/cannabis-politics) [![Amsterdam-Style Cannabis Cafes Coming To California With Celebrity Backing: Here's Who Pushed For The Bill](https://420intel.com/hs-fs/hubfs/AdobeStock_983658523.jpg?width=550&height=395&name=AdobeStock_983658523.jpg)](https://420intel.com/blog/amsterdam-style-cannabis-cafes-coming-to-california-with-celebrity-backing-heres-who-pushed-for-the-bill)

- [![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)
- 1 October 2024

#### [Amsterdam-Style Cannabis Cafes Coming To California With Celebrity Backing: Here's Who Pushed For The Bill](https://420intel.com/blog/amsterdam-style-cannabis-cafes-coming-to-california-with-celebrity-backing-heres-who-pushed-for-the-bill)

## Gov. Gavin Newsom signed a bill allowing cannabis lounges to sell food and host events, creating...

[Cannabis Laws](https://420intel.com/blog/tag/cannabis-laws) [![Omaha Tribe Leads Nebraska in Cannabis Legalization](https://420intel.com/hs-fs/hubfs/AI-Generated%20Media/Images/The%20image%20captures%20a%20vibrant%20scene%20on%20the%20Omaha%20Tribes%20reservation%20bustling%20with%20activity%20as%20a%20diverse%20group%20of%20people%20gathers%20outside%20a%20newly%20established%20cannabis%20dispensary%20Colorful%20banners%20announcing%20the%20grand%20opening%20flutter%20in%20the%20gentle%20breeze.jpeg?width=550&height=395&name=The%20image%20captures%20a%20vibrant%20scene%20on%20the%20Omaha%20Tribes%20reservation%20bustling%20with%20activity%20as%20a%20diverse%20group%20of%20people%20gathers%20outside%20a%20newly%20established%20cannabis%20dispensary%20Colorful%20banners%20announcing%20the%20grand%20opening%20flutter%20in%20the%20gentle%20breeze.jpeg)](https://420intel.com/blog/omaha-tribe-leads-nebraska-in-cannabis-legalization)

- [![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)
- 16 July 2025

#### [Omaha Tribe Leads Nebraska in Cannabis Legalization](https://420intel.com/blog/omaha-tribe-leads-nebraska-in-cannabis-legalization)

The Omaha Tribe of Nebraska is taking a historic step forward by legalizing the sale of marijuana...

- [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" : "2025-09-24T12:32:12.224Z",
  "datePublished" : "2025-09-24T11:28:58.000Z",
  "headline" : "New Law Eases Taxes for California Cannabis Companies",
  "image" : [ "https://420intel.com/hubfs/elsa-olofsson-uzpqxrK6t2Q-unsplash-1.jpg" ],
  "mainEntityOfPage" : {
    "@id" : "https://420intel.com/blog/new-law-eases-tax-burden-for-california-cannabis-firms",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://420intel.com/hubfs/Asset%2016.png"
    },
    "name" : "420 Intel"
  }
}
```