California is cutting taxes on cannabis with new legislation that was signed by Gov. Gavin Newsom on Monday.

Newsom signed Assembly Bill 584, authored by Asm. Matt Haney (D–San Francisco), which eliminates a 25% tax increase on the cannabis industry.

The backstory: The California Legislature got rid of the cannabis cultivation tax three years ago and scheduled tax increases every two years to adjust the cannabis tax rate by a percentage that would generate the amount of revenue that would have been collected with the cultivation tax. • That turned into a 25% cannabis tax increase in July, raising the rate from 15%.

The big picture: AB 584 reversed the 25% July increase and kept the cannabis tax rate at 15% until 2028.

State of the market: The state reported its cannabis tax revenue n

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