Governor Gavin Newsom has signed a bill canceling a planned 25% tax hike on legal cannabis in California. The move is being celebrated by industry leaders, but some critics warn it will come at the expense of key state programs.

The new law is designed to help licensed growers and retailers stay afloat and better compete with the illegal market. Supporters argue that lowering the tax burden is essential to stabilizing the legal cannabis industry, which has been struggling with declining sales, widespread business closures, and shrinking tax revenue.

"The legal cannabis industry is in crisis," said Amy Jenkins, executive director of the California Cannabis Operators Association. "There were already consumers that weren't shopping at legal stores because they didn't want to pay the 40-50%

See Full Page