Cannabis Tax

California and Texas are heading in opposite directions on cannabis and hemp. Governor Newsom’s AB 564 marks a win for the legal cannabis market with the reversal of California’s cannabis excise tax increase, while Governor Abbott’s GA-56 signals tighter restrictions for hemp retailers. Together, they spotlight the widening policy divide between two of America’s largest states.

California’s cannabis industry is funding child care, environmental cleanup, and public safety — but at what cost? With excise taxes jumping from 15% to 19%, legal operators are being squeezed out while illicit markets thrive. As the LA Times highlighted, the question is clear: can California sustain vital programs and a legal cannabis market, or are we pushing the industry toward collapse?