<H2>California Rolls Back Cannabis Tax to Support Legal Market Growth</H2>
<p>In a progressive move for the cannabis industry, California Governor Gavin Newsom has signed Assembly Bill 564 (AB 564) into law, a crucial step that prevents an impending 25% excise tax hike on cannabis. The legislation, effective from October 1, 2025, not only rolls back the tax to its original rate but also halts any future increases on retail adult-use cannabis products until June 30, 2028. This strategic decision aims to stabilize and nurture California's robust legal cannabis economy.</p>
<p>Governor Newsom emphasized the importance of fostering a competitive legal market by stating, "We’re rolling back this cannabis tax hike to enable the legal market to thrive, provide consumers with safe products, and ensure our local communities reap the benefits." Assemblymember Matt Haney echoed these sentiments, highlighting AB 564 as a pivotal measure to protect jobs, preserve small businesses, and sustain the legal market as intended by voters.</p>
<H2>California’s Cannabis Market: Ready for Expansion</H2>
<p>California holds one of the largest regulated cannabis markets globally, and the passing of AB 564 is expected to promote sustained growth and competitiveness. With the excise tax reset to 15% until 2028, legal cannabis enterprises are positioned to outperform the untaxed and unregulated market, encouraging consumer loyalty and investment in quality, lab-tested products.</p>
<p>The concerted advocacy efforts led by California NORML, supported by industry stakeholders like the United Food and Commercial Workers – Western States Council and the California Cannabis Industries Association, were instrumental in the bill's passage. Over 10,000 pieces of correspondence were directed at state lawmakers, demonstrating widespread support for legislative change to fortify California's cannabis landscape.</p>
<H2>Advancing Legal Cannabis Operations</H2>
<p>Dale Gieringer, Coordinator of California NORML, remarked on the excessive taxation of cannabis relative to similar products such as beer, wine, and tobacco, stressing the need for balanced tax policies. Paul Armentano, NORML’s Deputy Director, warned of the detrimental impact high taxes have on consumer behavior, often driving them back to the unregulated market. AB 564 serves to align prices and accessibility, upholding the foundational goals of legalization.</p>
<p>Alongside tax reform, Governor Newsom's administration has established the Unified Cannabis Enforcement Taskforce (UCETF), which has successfully seized over 317 tons of illicit cannabis, valued at approximately $890 million from 230 operations. This initiative strengthens enforcement against illegal activities, contributing to a fair and sustainable environment for legal businesses.</p>
<H2>Enforcement and Support Measures Bolster Legal Market</H2>
<p>In a testament to its commitment to the cannabis sector, California is directing cannabis tax revenue towards sustained civil and criminal enforcement actions against illegal operators. This ensures the legal market remains unburdened by illicit competition. The expansion of Board of State and Community Corrections (BSCC) grant eligibility to local jurisdictions further bolsters enforcement efforts, particularly in areas permitting retail access to cannabis products.</p>
<p>With these legislative and enforcement advancements, California continues to lead the charge in shaping a thriving, equitable cannabis industry that reflects the burgeoning needs of consumers and businesses alike. Stay informed with Canna Daily News for ongoing updates and insights on this dynamic sector.</p>
<p>#CannabisTaxReform #CaliforniaCannabis #LegalMarketGrowth #CannabisEnforcement #CannabisIndustryNews</p>