California Cannabis Tax Revenues Reach $502M So Far This Year

California cannabis tax revenues have totaled $502.8 million during the
first two quarters of this year, according to state data outlined by KTLA5. Tax
revenues from cannabis sales topped $243.1 million during the first quarter
and $259.7 million during the second quarter, according to state Department
of Tax and Fee Administration (CDTFA) figures.

During the second quarter, the state took in $147.3 million in cannabis
excise taxes and $112.4 million in sales taxes from cannabis businesses
throughout the state.

“The second-quarter figures also reflect the state’s vendor compensation
program, which allowed eligible cannabis vendors to retain more than $1.3
million during the quarter.” — CDTFA via KTLA5

Since California voter-approved Proposition 64 took effect in January 2018,
cannabis sales in the state have generated more than $7.3 billion in tax
revenue, including nearly $3.9 billion in cannabis excise taxes and more
than $2.9 billion in sales taxes.

Last week, state lawmakers approved a bill to reverse a recent 25% tax hike
on the state’s cannabis industry that took effect July 1. If signed by Gov.
Gavin Newsom (D), the measure would maintain the previous rate of 15% until
2028. The initial tax hike was caused by a previous law that removed a
cannabis cultivation tax but included automatic adjustments to the
industry’s tax rate if cannabis revenues began to fall, which they did.