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 – California lawmakers have decided to give the state’s cannabis industry some breathing room. A bill that would reverse a steep 25 percent tax increase on marijuana sales is now on its way to Gov. Gavin Newsom, after passing both chambers of the Legislature with overwhelming bipartisan support.
Assembly Bill 564, authored by Assemblymember Matt Haney of San Francisco, cleared the State Senate this week on a 39-1 vote. The Assembly had already passed it earlier this summer with a unanimous 74-0 margin. The measure would roll back the July tax hike and keep the excise rate at 15 percent through July 2028.
Haney said piling on extra costs at a moment when California’s cannabis market is struggling was shortsighted. “If we want to support our cannabis industry that drives millions of visitors to California every year, adding more costs makes absolutely no sense,” he said.
Supporters of the rollback argue that higher taxes have only driven more customers to the black market, where products are cheaper but unregulated. In some parts of the state, consumers face effective taxes on cannabis as high as 45 percent once state and local levies are combined. Legal sales in California, they note, have lagged behind other states like Colorado and Michigan, where lower taxes and fewer restrictions have given licensed businesses more room to compete.
Industry advocates say that keeping the tax rate stable is about more than just propping up businesses—it’s about keeping Proposition 64’s promises. Voters approved the 2016 measure that legalized recreational cannabis with the understanding that it would create a safe, regulated marketplace and generate reliable tax revenue for communities.
“By stopping this misguided tax hike, the Legislature recognized that smart policy grows revenue by keeping the legal market viable,” said Amy O’Gorman Jenkins, executive director of the California Cannabis Operators Association. “Today’s result is exactly what Proposition 64 promised: patients and consumers accessing tested, regulated products while generating sustainable tax revenue for communities.”
The broader challenge for California has been balancing its role as the world’s largest legal cannabis economy with the reality that unlicensed operators remain widespread. Lawmakers have repeatedly tinkered with tax rates and enforcement to give licensed growers and retailers a fighting chance.
Now it’s up to Gov. Newsom to decide whether to sign the measure. He’s long positioned himself as a champion of legal cannabis, but this bill will test how far he’s willing to go to ease the burdens on an industry still trying to stabilize nearly a decade after legalization.
