Cannabis: excise tax: rate increase repeal.

Assembly Member Haney's cannabis tax reform measure modifies California's retail cannabis excise tax structure through 2030 and beyond. The legislation maintains the current 19% excise tax rate through September 2025 before reducing it to 15% until June 2030. Beginning in fiscal year 2030-31, the California Department of Tax and Fee Administration would resume biennial adjustments to the rate, capped at 19%, to offset revenue previously generated by the discontinued cultivation tax.

The measure requires the Department to submit annual reports starting June 2027 detailing the revenue impacts of the tax rate reduction. These reports will help the Legislature evaluate whether the change achieves its stated goal of providing tax relief to the cannabis industry. The reporting requirement expires January 1, 2031, while the underlying tax structure modifications remain in place.

The bill preserves existing exemptions for donated medicinal cannabis and trade samples, while maintaining retailers' responsibility to collect and remit the tax with proper documentation to purchasers. The excise tax continues to apply in addition to state and local sales taxes, with purchasers remaining liable until payment is made to the state.