The California Assembly has unanimously approved a bill to delay the implementation of a planned increase on marijuana taxes.

Approximately one month after state officials announced that the tax rate of cannabis taxes would increase from 15 to 19 percent on July 1, the assembly voted 74-0 to approve the legislation of the Matt Haney Assembly (D) to delay the change for five years.

The bill now goes to the Senate for consideration, but the defenders hope to see their language incorporated to a separate budget trailer that would enter into force with promulgation, unlike next year, as would be the case under Haney’s bill.

Although the legislation introduced would have directly repealed the proposed tax increase, since then it has been modified to delay its implementation until fiscal year 2030-2031.

United Food and Commercial Workers (UFCW) officials applauded the assembly vote.

Joe Duffle, president of Local UFCW 1167, said that increasing the tax rate “would only increase the number of failed legal cannabis” in the state.

“AB 564 Freezes the special cannabis tax at 15 percent and gives cannabis legal businesses an opportunity to fight to keep afloat in an industry that is all contracting saying. “Without this bill, the illegal cannabis industry will only bloom and will continue to put unseeded cannabis products, not turns and not regulated in the hands of consumers.”

Under the legislation, The California Department of Tax and Fee Administration (CDTFA), Working With The Department of Finance, Would Be Require by a Cannabis retailer that the department estimates will generate an amount of renvenue equivalent to the amount what would Have Been Collected in the prior fiscal year year, ”The text by Bill says.

The department would need to “estimate the amount of income that would have been collected in the previous fiscal year in accordance with the weight -based cultivation tax” and “estimate this amount projecting the income of cultivation taxes based on the weight that would have been collected in the previous calendar year based on the information available for the department”.

“The specific objective of the reduction of the CANNABIS special tax rate is to provide immediate fiscal deduction to the cannabis industry,” says the measure. “The legislature can measure the effectiveness of this objective for the amount of gain or loss in the tax revenue of special cannabis taxes resulting from the reduction of the tax rate of special cannabis taxes allowed by this law.”

Also Mandates That CDTFA, on December 1, 2026, and every later year, California “presents a report to the Legislature … which details the amount of gain or loss in the tax revenues of special cannabis taxes resulting from the reduction of the tax rate of special cannabis taxes allowed by this law.”

Meanwhile, California officials last month granted another round of community reinvestment grants to non -profit organizations and local health departments, financed by fiscal income of marijuana.

The California Supreme Court delivered a victory for the State Marijuana program separately Last month, terminating a decision of the lower court in a case that suggested that the federal prohibition could be used locally to undermine the cannabis market.

The ruling of the Supreme Court of the State also arrived only weeks after California officials presented a Report on the current state and the future of the state marijuana marketWith independent analysts hired by regulators concluding that the federal prohibition of cannabis that prevents interest trade is significantly reinforcing the illicit market.

Governor Gavin Newsom (D) signed a bill in 2022 that would have He empowered him to enter Commerce Agreements of Interestatal Cannabis with other legal states, but that power was concerned with the federal orientation or an evaluation of the State Attorney General who sanctioned said activity.

Meanwhile, a Committee from the California Senate recently refused to advance a bipartisan bill that would have He created a pilot psychoocybin program for military veterans and former lifeguards.

Written by Kyle Jaeger For the moment of marijuana | Outstanding image of Weedmaps

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