California Bill Aims to Halt 25% Cannabis Tax Increase

California's Assembly Bill 564, introduced by Assemblymember Matt Haney, aims to halt a scheduled increase in the state's cannabis excise tax from 15% to 19% set for July 1, 2025. Supporters argue that this tax hike would further threaten the already struggling legal cannabis industry, which has seen significant declines in sales and job losses, prompting concerns about driving consumers towards the illicit market. Opponents, including public health advocates, warn that freezing tax rates could result in substantial revenue losses for vital programs such as childcare and public safety. The bill is expected to be reviewed by relevant committees in April. Meanwhile, the Santa Cruz County Board of Supervisors has approved plans for cannabis lounges and farm sales, emphasizing the need for regulations to prevent over-serving customers. Advocates for the legal cannabis industry stress the importance of creating a balanced approach that supports businesses while ensuring community safety.