PRIA Logo™
CaliforniaAB 5642025-2026 Regular SessionHouseWALLET

Cannabis: excise tax: rate increase repeal.

Sponsored By: Matt Haney (Democratic)

Signed by Governor

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 2 costs, 0 mixed.

Excise tax and rates for cannabis buyers

Beginning January 1, 2023, cannabis buyers pay a 15% excise tax on the purchase price. From July 1 through September 30, 2025, the rate is 19%. Starting with the 2028–29 year, the state recalculates the rate every two years to replace prior cultivation‑tax revenue; it is rounded to 0.25% and capped at 19%. The excise tax is included in the amount used to compute sales tax, so your total tax at checkout is higher. You must pay the excise tax at the time of sale, and a receipt that shows the tax separately protects you from any further liability for that sale. Donated medicinal cannabis given free to qualifying patients is not taxed.

Retailer duties for cannabis excise tax

Retailers must collect the cannabis excise tax from buyers and send it to the state. They must give each buyer a receipt that shows the excise tax as a separate line. Items marked as trade samples are not taxed when given away, but a licensed business that sells them owes the excise tax like a retailer.

Sponsors & Cosponsors

Sponsor

  • Matt Haney

    Democratic • House

Cosponsors

  • Sharon Quirk-Silva

    Democratic • House

  • Rhodesia Ransom

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 241 • No: 1

House vote • 9/11/2025

Item 29 — Assembly AFLOOR

Yes: 76 • No: 0

Senate vote • 9/10/2025

Item 178 — Senate SFLOOR

Yes: 39 • No: 1

legislature vote • 8/29/2025

Vote in CS61

Yes: 7 • No: 0

legislature vote • 8/18/2025

Vote in CS61

Yes: 7 • No: 0

legislature vote • 7/9/2025

Vote in CS83

Yes: 5 • No: 0

House vote • 6/2/2025

Item 116 — Assembly AFLOOR

Yes: 74 • No: 0

legislature vote • 5/23/2025

Vote in CX25

Yes: 13 • No: 0

legislature vote • 5/5/2025

Vote in CX19

Yes: 6 • No: 0

legislature vote • 4/22/2025

Vote in CX33

Yes: 14 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State - Chapter 127, Statutes of 2025.

    9/22/2025Senate

  2. Approved by the Governor.

    9/22/2025legislature

  3. Enrolled and presented to the Governor at 3:30 p.m.

    9/17/2025legislature

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0. Page 3294.).

    9/11/2025House

  5. In Assembly. Concurrence in Senate amendments pending.

    9/10/2025House

  6. Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 1. Page 2809.).

    9/10/2025Senate

  7. Read second time. Ordered to third reading.

    9/8/2025Senate

  8. Read third time and amended. Ordered to second reading.

    9/5/2025Senate

  9. Read second time. Ordered to third reading.

    9/3/2025Senate

  10. Read second time and amended. Ordered returned to second reading.

    9/2/2025Senate

  11. From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) .

    9/2/2025Senate

  12. In committee: Referred to suspense file.

    8/18/2025Senate

  13. Read second time and amended. Re-referred to Com. on APPR.

    7/10/2025Senate

  14. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (July 9).

    7/9/2025Senate

  15. Referred to Com. on REV. & TAX.

    6/11/2025Senate

  16. In Senate. Read first time. To Com. on RLS. for assignment.

    6/3/2025Senate

  17. Read third time. Passed. Ordered to the Senate. (Ayes 74. Noes 0. Page 1842.)

    6/2/2025House

  18. Read second time. Ordered to third reading.

    5/27/2025House

  19. From committee: Do pass. (Ayes 13. Noes 0.) (May 23).

    5/23/2025House

  20. In committee: Set, first hearing. Referred to suspense file.

    5/14/2025House

  21. Re-referred to Com. on APPR.

    5/8/2025House

  22. Read second time and amended.

    5/7/2025House

  23. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (May 5).

    5/6/2025House

  24. In committee: Set, first hearing. Referred to REV. & TAX. suspense file.

    5/5/2025House

  25. From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 14. Noes 0.) (April 22). Re-referred to Com. on REV. & TAX.

    4/22/2025House

Bill Text

  • Chaptered

    9/22/2025

    HTML

  • Enrolled

    9/15/2025

    HTML

  • Amended Senate

    9/5/2025

    HTML

  • Amended Senate

    9/2/2025

    HTML

  • Amended Senate

    7/10/2025

    HTML

  • Amended Assembly

    5/7/2025

    HTML

  • Introduced

    2/12/2025

    HTML

Related Bills

Back to State Legislation