When Californians shop at licensed cannabis dispensaries, they often pay far more than the shelf price. Between California’s 15% cannabis excise tax, state and local sales taxes, and city cannabis business taxes in some jurisdictions, legal cannabis can become significantly more expensive than consumers expect. info
That doesn’t just affect businesses.
It affects patients.
It affects everyday consumers.
And it affects the future of California’s legal cannabis market.
High Cannabis Taxes Push Consumers Away From the Legal Market
California created a regulated cannabis market to promote safety, testing, compliance, and consumer protections. But when taxes stack up, legal products can become difficult for many consumers to afford.
That can push shoppers toward the illicit market—where products may be untested, unsafe, or sold without the protections licensed retailers provide.
Lower taxes can help:
- Make legal cannabis more affordable
- Support licensed small businesses and jobs
- Increase participation in the regulated market
- Reduce demand for illegal cannabis sales
- Improve long-term tax stability through greater legal sales volume
Cannabis Taxes Are a Consumer Issue, Not Just a Business Issue
This is not only about dispensaries.
It’s about whether California consumers should pay excessive taxes on a legal product.
Many advocates believe California lawmakers should consider:
- Lowering the cannabis excise tax
- Limiting excessive local cannabis taxes
- Providing tax relief for medical patients
- Creating policies that help legal operators compete fairly
Contact Your California State Representative
Consumers can have a voice in changing cannabis tax policy.
Contact your elected officials and ask them to support cannabis tax reform.
You can find your representatives here:
- California State Assembly: Find Your Assembl Member
- California State Senate: https://findyourrep.legislature.ca.gov
Sample Message to Send
Subject: Support Lower Cannabis Taxes in California
I am a California voter and I support lowering cannabis taxes to make legal cannabis more affordable and competitive. High taxes push consumers to the illicit market and hurt licensed businesses that follow state regulations.
Please support legislation that reduces cannabis excise taxes and addresses excessive local cannabis taxes.
Thank you for supporting consumers and California’s legal cannabis industry.
Support Cannabis Tax Reform
If you believe legal cannabis should be taxed fairly, contact your representative today.
Lower taxes can help consumers, patients, and licensed operators while strengthening California’s regulated market.
The legal market should be able to compete — and consumers should not be priced out.