California’s cannabis industry is getting a much-needed lifeline, and we’re here for it.

Gov. Gavin Newsom just signed a game-changing bill that’s set to cool down those sky-high cannabis taxes. AB 564, championed by Assemblymember Matt Haney, is essentially throwing a regulatory life preserver to the struggling legal weed market.

The Tax Takedown

Back in July, the state cranked up cannabis excise taxes from 15% to 19%, which basically sent legal cannabis consumers running to the black market faster than you can say “dispensary”. The result? A whopping 60% of cannabis consumption stayed underground, leaving legal businesses gasping for financial oxygen.

Why This Matters

This isn’t just about getting high - it’s about creating a fair playing field for legal cannabis businesses. By freezing the tax rate at 15% until 2028, the state is giving legal cannabis entrepreneurs a fighting chance to compete with unregulated markets.

The Bigger Picture

Origins Council, a nonprofit advocating for cannabis cultivators, called this bill “a step in the right direction”. And honestly? In a state known for innovation, this feels like a rational approach to regulating an industry that’s been historically complicated.