Stop the Cannabis Excise Tax Hike — Your Voice Can Make a Difference

On May 2, 2025, the California Department of Tax and Fee Administration (CDTFA) confirmed that the cannabis excise tax will increase from 15% to 19% on July 1, 2025. This change is the result of a 2022 law that allows tax rate increases based on state revenue triggers. But California’s legal cannabis businesses are already overburdened, and this hike could be the final blow.

There’s still time to stop it. AB 564 (Haney) would keep the excise tax at 15%. CDTFA acknowledged this effort in its notice:

“We are aware of proposals to change our requirement to adjust the cannabis excise tax rate. If there are any changes that will affect the tax rate, you will receive another notification from us.”

Submit a Letter of Support
We’ve made it easy to take action. Sign and send a pre-filled letter urging lawmakers to support AB 564:
Submit Support Letter →

Share the link with your network –  every voice matters.

Why This Matters

• Higher taxes = higher prices. Consumers already pay over 30% in taxes on legal cannabis. A jump to 19% will only drive more people to the illicit market.
• This is a public safety issue. Every consumer lost to the unregulated market puts safety at risk, there is no testing, oversight, or accountability.

Let’s send a clear message to Sacramento: Don’t raise cannabis taxes. Support AB 564.

Thank you for standing with us!

– The Perfect Union Team

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