Cannabis: excise tax: rate increase repeal.

Assembly Member Haney's cannabis tax legislation delays planned adjustments to California's cannabis excise tax rate until the 2030-31 fiscal year, maintaining the current 15% rate on retail sales for an additional five years. The bill modifies a 2022 law that would have required the California Department of Tax and Fee Administration to begin adjusting the rate biennially starting in 2025-26.

Under the proposal, cannabis retailers must continue collecting the 15% excise tax from purchasers and providing itemized documentation of the tax on sales receipts. The tax applies to retail cannabis transactions, with exemptions for donated medicinal cannabis and designated trade samples. The excise tax remains factored into gross receipts calculations for state and local sales tax purposes.

The Department of Tax and Fee Administration must submit annual reports to the Legislature beginning December 2026 detailing revenue impacts from maintaining the current rate. These reporting requirements sunset on January 1, 2031, when the department gains authority to adjust the rate biennially up to 19% to offset revenue previously generated by the discontinued cultivation tax.