California Confirms Cannabis Tax Hike to 19% Amid Industry Concerns

California's legal cannabis industry is facing a significant challenge as the state will increase its excise tax on marijuana from 15% to 19% on July 1, a 26% hike mandated by a 2022 law after tax revenues fell. Industry leaders and advocates warn that this hike could push more consumers toward the illicit market, as legal cannabis is already taxed far more heavily than alcohol, tobacco, or firearms. Many licensed operators say they cannot afford the higher tax burden and fear further business closures, while some lawmakers are proposing legislation to freeze the tax at 15% to preserve the regulated market. The increase is intended to offset lost revenue after the cultivation tax was removed, but critics argue it will worsen the industry's financial strain and reduce investment. California's cannabis tax per joint far exceeds taxes on other regulated substances, intensifying the struggle for legal businesses to compete with untaxed illegal sellers. Calls for legislative and administrative intervention are growing as stakeholders fear the survival of California's legal cannabis market is at stake.