California Cannabis Tax Jump: Lawmakers Skip Delay, Prices Set to Rise July 1st

California’s legal cannabis community is facing a tough break as state officials confirmed a significant tax hike is hitting the market on July 1. Despite a push from advocates and support from Governor Newsom to freeze rates, lawmakers failed to include a delay in the final budget legislation. As a result, the excise tax is set to jump from 15% to 19% next week. While some officials warned this move could push consumers back to the illicit market, Senate leadership ultimately blocked the reprieve.

On a brighter note, the state is still funneling millions into community reinvestment grants and inviting new research proposals to better inform future pot policies. However, for everyday tokers in the Golden State, this means your favorite stash is about to get more expensive at the register. Higher taxes on legal shops often make it harder for small businesses to compete with underground sellers, which can limit the variety and safety of products available to the community. It’s a frustrating step backward for a state that usually leads the way in accessibility.