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Amy O'Gorman Jenkins, one of California's most influential cannabis lobbyists and director of the California Cannabis Operators Association (CaCOA), breaks down the critical fight to reform cannabis taxes and save the state's struggling legal market. The industry faces a dire situation with legal cannabis sales dropping 30% since 2021 and a recent automatic tax increase from 15% to 19% that represents a 25% hike for consumers.

• Legal cannabis sales in California have dropped 30% since Q2 of 2021
• The cannabis excise tax just increased from 15% to 19% on July 1st, creating a combined tax burden of approximately 38%
• AB 564 would revert the tax back to 15% for five years but faces opposition in the Senate after passing the Assembly 76-0
• Budget negotiations to freeze the tax increase failed despite Governor Newsom's public support
• Tax revenue beneficiaries oppose reform, incorrectly arguing higher taxes will generate more revenue
• California's legislature includes 120 members (80 Assembly, 40 Senate) with 70% of Assembly members having less than four years' experience
• Industry associations are fragmented and under-resourced, limiting political influence
• AB 8 aims to regulate intoxicating hemp products under the cannabis framework
• Future cannabis reform may require a constitutional amendment returning to voters

Call your state senator today to express support for AB 564 and join industry associations to strengthen advocacy efforts in Sacramento.

https://www.cacoa.org/

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