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SoCal Matters
Newsom Signs Law To Delay Cannabis Tax Increase
Season 2025
Episode 464
AB 564 reverts the cannabis excise tax to 15% until 2028, suspending a 19% hike. The change aims to help legal sellers compete with an illicit market. Legal sales are about 40% of consumption, and taxable sales fell from roughly $1.5B to $1.2B. Several nonprofits and conservation groups oppose the rollback.
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