Local dispensaries look for rollback on cannabis excise tax
Kendall Flynn
CATHEDRAL CITY, Calif. (KESQ) – The Cannabis Rights to Remedy Act is under review once again in California Legislature. Local dispensaries say this comes at a time when the industry is in decline, with the cost of cannabis expected to drop to an all-time low of around $200 per unit.
The decline in cost could hurt the industry, leading to California to consider changes to AB 564 – Cannabis Right to Remedy Act – which is a bill aiming to strengthen consumer protections by ensuring cannabis customers have access to the same types of remedies available in other regulated industries.
The state house and senate have passed changes to the bill, which would rollback on the excise tax that went into effect July 1, 2025. The cannabis excise tax rate could roll back from 19% down to 15%, effective October 1, 2025. This rollback is expected to help stabilize and support the cannabis market during this challenging period.
The California State Senate passed AB 564 Sept. 10 with a 39-1 vote, and the Assembly followed Sept. 11 with a 76-0 vote in favor. These passages include votes in favor from Assemblymembers Greg Wallis and Jeff Gonzalez, and State Senators Steve Padilla and Rosilicie Ochoa Bogh.
AB 564 is now on Governor Gavin Newsom’s desk as dispensaries wait to hear the decision. If signed, the rollback would go into effect October 1, 2025.
Stay with News Channel 3 to hear from dispensaries about the impacts of the tax in the last two months and how the rollback would be beneficial.