California Advances Bill to Decrease Cannabis Tax Rate

California lawmakers approved a bill Thursday that would reverse a cannabis excise tax increase that took effect earlier this year.

The assembly initially passed A.B. 564 unanimously in June, but it became controversial as opponents questioned the impact the legislation would have on programs funded by revenue from the tax. Proponents have argued a lower tax rate would yield higher tax revenue if lower costs siphon customers from the illegal market. The bill would lower the rate back to 15% starting Oct. 1, 2025, through the 2028-2029 fiscal year. The cannabis tax rose to 19% in July.

The senate passed ...