California Cannabis Excise Tax Increases 4% July 1

California will raise its cannabis excise tax from 15% to 19% starting July 1, a move mandated by state law that some business owners fear will hamper industry growth and push consumers toward the black market. Customers and dispensary managers express concern about the financial burden, noting that the tax increase could add roughly $5 to the average purchase, exacerbating challenges faced by legal retailers competing with illegal sellers. Assembly Bill 564 aims to cap the tax at 15%, but it has yet to pass. Meanwhile, Maryland is also implementing new taxes, including hikes on cannabis, vehicle excise, and income taxes, to address a $3 billion deficit, prompting criticism from small business owners worried about the economic impact. In Indiana, a significant 200% increase in tobacco taxes, including on cigarettes and vaping products, is set to take effect July 1, aimed at reducing tobacco use and funding state budget needs. These tax changes across states highlight a trend of raising excise taxes on cannabis and tobacco products despite concerns about unintended consequences such as increased black market activity and business strain.