California AB564 suspends the cannabis excise tax rate increase and mandates a report on its effects.

California AB564 suspends the increase in the cannabis excise tax rate from 15% to 19% and requires the Department of Cannabis Control to analyze its impact on the regulated cannabis market. The bill mandates a report by October 1, 2027, assessing the tax law's effect on revenue generation, administrative feasibility, and the competitive position against the illicit market. The report must also recommend options for changes to the Cannabis Tax Law. The bill includes provisions for tax collection, reporting, and adjustments based on revenue estimates.

California AB564 suspends the cannabis excise tax rate increase and mandates a report on its effects.

California AB564 suspends the increase in the cannabis excise tax rate from 15% to 19% and requires the Department of Cannabis Control to analyze its impact on the regulated cannabis market. The bill mandates a report by October 1, 2027, assessing the tax law's effect on revenue generation, administrative feasibility, and the competitive position against the illicit market. The report must also recommend options for changes to the Cannabis Tax Law. The bill includes provisions for tax collection, reporting, and adjustments based on revenue estimates.