The California Senate has approved legislation that would reverse a marijuana tax increase that took effect on July 1.
Assembly Bill 564, sponsored by Assemblymember Matt Haney (D), was approved through its second reading in the Senate on Wednesday, with a third and final reading expected soon.
The measure would suspend an automatic hike in the state’s marijuana excise tax rate from 15% to 19%, postponing it until at least October. Lawmakers amended the bill to ensure the delay takes effect immediately upon enactment.
“AB 564 will provide tax relief to California’s struggling cannabis industry by reversing an unprecedented 25 percent excise tax increase,” Haney said during debate on the measure. “The legal cannabis industry needs a lifeline to stabilize.”
Once the Senate passes the bill through its third reading, it will head back to the Assembly for a final concurrence vote before it can be sent to Governor Newsom’s desk.
