A bill that would pause a 25% tax increase on California's legal cannabis is heading to Gov. Gavin Newsom's desk, after being approved by the legislature.

On Wednesday, Assembly Bill 564 by Asm. Matt Haney (D-San Francisco) cleared its final legislative hurdle with a 39-1 vote in the State Senate. The measure passed the Assembly in June with a 74-0 vote .

"If we want to support our cannabis industry that drives millions of visitors to California every year, adding more costs makes absolutely no sense," Haney said.

AB564 would reverse a tax hike enacted in July and keep the previous rate of 15% in effect through July 2028.

Supporters of the measure argue that raising taxes on cannabis, which are as high as 45% in some areas, have weakened the state's legal cannabis industry as it

See Full Page