An American Heart Association study has found that daily marijuana use is linked to a significantly higher risk of heart attack and stroke. And the increased danger exists whether users smoke, vape or eat their cannabis products.
Sacramento, California – In a rare display of bipartisan consensus, California lawmakers voted unanimously on Monday to delay a scheduled tax increase on the state’s licensed cannabis industry, citing deepening economic pressures on legal operators and growing concern over the strength of the illegal market.
In a 74–0 vote, the State Assembly approved AB564, introduced by Assemblymember Matt Haney (D–San Francisco). This bill would pause a cannabis excise tax hike originally set to take effect July 1. The increase, from 15% to 19%, was announced by state officials in April and slated to be the first significant adjustment to cannabis tax rates since voters legalized recreational marijuana nearly a decade ago under Proposition 64.
Now, if the bill is approved by the State Senate and signed into law, the tax hike will be delayed by five years.
For Haney, the measure reflects an urgent effort to stabilize an industry many believed would become a pillar of California’s post-legalization economy — but which is instead mired in declining sales, high operating costs, and persistent competition from unlicensed sellers. “If we continue to pile on more taxes and fees onto our struggling small cannabis businesses, California’s cannabis culture is under serious threat of extinction,” Haney said in a statement.
Legal cannabis sales in California have been falling steadily, even as other states, such as Michigan, have seen strong year-over-year growth. Haney and other supporters of the bill point to lower tax burdens and fewer regulatory barriers in those states as key reasons for the contrast.
Since its legalization, California’s cannabis market has faced structural challenges: inconsistent local licensing regimes, a costly and complex regulatory framework, and a black market that remains robust and undercuts licensed businesses on price and availability. The 15% retail excise tax established under Proposition 64 was initially pitched as a sustainable compromise — high enough to fund regulatory oversight and social equity programs, but not so burdensome as to push consumers toward the illegal market.
Yet in the years since, many operators say that vision has faltered. According to Caren Woodson, president of the California Cannabis Industry Association, the proposed tax hike to 19% would have pushed many already-precarious businesses over the edge. “Nearly a decade after Californians overwhelmingly approved cannabis legalization, the industry is struggling under the crushing weight of a 15% excise tax,” Woodson said. “Any increase, particularly a 25% increase, would not only be bad public policy, but devastating to operators already on the brink.”
The approved bill now heads to the Senate for further consideration. Advocates hope the state government will incorporate the language of AB564 into a separate budget trailer bill that could take effect immediately upon enactment — rather than at the start of the next fiscal year, as AB564 is currently structured.
The vote comes at a time when California’s cannabis economy — once heralded as a model for the nation — is being re-evaluated by lawmakers, regulators, and stakeholders alike. While legalization has brought numerous benefits, including job creation and enhanced public health oversight, these gains have increasingly come under strain.
