A California bill to pause a recently enacted tax hike on marijuana products is heading to the governor's desk after a final unanimous vote in the Assembly. If signed into law, the bill would pause the tax increase for five years. The legislation aims to provide immediate tax relief to California’s struggling cannabis industry by reversing an unprecedented 25 percent excise tax increase. The bill would also require the California Department of Tax and Fee Administration (CDTFA) to adjust the cannabis excise tax rate to generate an equivalent amount of revenue that would have been collected from the cultivation tax.

California Passes Bill to Pause Cannabis Tax Hike

Sep 12, 2025

Source:

Kyle Jaeger

Marijuana Moment

California’s cannabis industry just got a massive breath of fresh air as a new bill to halt an excise tax hike is officially heading to Governor Newsom’s desk. In a rare show of total agreement, the State Assembly voted unanimously to pause a recently enacted 25 percent tax increase for the next five years. This move is designed to offer immediate financial relief to legal businesses that have been struggling under heavy state fees. If the Governor signs off, the tax rate would drop back down from 19 percent to 15 percent starting this October.

For regular tokers and the local community, this is a huge win for accessibility. High taxes are the main reason legal weed often costs way more than the legacy market, pushing people away from tested, regulated products. By freezing these hikes, the state is making it easier for your favorite local dispensaries to keep their doors open and their prices competitive. Lower overhead for shops usually means better deals for us, ensuring the legal market stays healthy and our stash stays affordable.

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