Bill AB564 (Haney) to Halt A Cannabis Tax Increase Passes First Committee
- Erin McMichael
- Apr 22
- 1 min read
Updated: Apr 29
April 22, 2025 | Article written by CAL-NORML
UPDATE: The bill will next be heard on Monday, May 5 at 2:30 PM in the Assembly Revenue and Taxation committee.
April 22, 2025, Sacramento – By a vote of 15-0-3, the California Assembly Business and Professions Committee passed through AB 564 (Haney), to halt a cannabis excise tax increase from 15% to 19% scheduled for July 1.
Three hours into the committee’s hearing on 4/22, Asm. Matt Haney (D-SF) introduced the bill, along with supporting witnesses Caryn Woodson of the California Cannabis Industry Assn. and Kristin Heidelbach of United Food and Commercial Workers. Nothing that the legal cannabis industry is “constantly at threat of being overtaken by the illegal, untaxed industry. Fully licensed cannabis businesses in California account for just 40% of the state’s entire market, while the underground illegal market accounts for 60%.” Haney noted, “In 2024, active cannabis licenses decreased by 18%, meaning more and more cannabis businesses are succumbing to the pressures of overtaxation. States like Michigan last year surpassed California in cannabis sales per capita. This tax increase would be an extinction event.”
Comentarios