[PRESS RELEASE] – SACRAMENTO, Calif., March 25, 2025 – The California Hashish Operators Affiliation (CaCOA) joined Meeting Member Matt Haney, D-San Francisco, at a press convention on the State Capitol to spotlight the pressing want to cross Meeting Invoice 564—law that will forestall the scheduled build up of the state hashish excise tax from 15% as much as 19% on July 1, 2025.
The information illustrates why that is severely wanted:
- Since 2021, California’s criminal hashish gross sales have declined by means of 19%, and excise tax earnings is down 13%.
- Greater than 10,800 licenses are inactive or surrendered, exceeding the collection of energetic licenses statewide.
- The trade misplaced just about 5,000 jobs in 2023, following 12,600 task losses in 2022.
“With 1000’s of companies already shuttered and tens of 1000’s of jobs misplaced, the criminal hashish trade is at the breaking point,” CaCOA President Alex Freedman stated. “California will have to do the whole lot it may possibly to stabilize the regulated marketplace, and A.B. 564 provides a lifeline to save lots of companies from chapter and customers from the well being and protection risks of the illicit marketplace.”
A.B. 564 repeals the automated tax build up enacted underneath A.B. 195 (Finances Committee, 2022), which empowers the California Division of Tax and Charge Management (CDTFA) to extend the hashish excise tax each and every two years. With out legislative intervention, the speed will upward thrust to 19% this summer season, a transformation that would cause some other wave of industrial closures and task losses.
“Elevating taxes in a shrinking marketplace is shortsighted and fiscally irresponsible,” Freedman stated. “A.B. 564 will lend a hand stage the enjoying box, give protection to jobs, and stay California aggressive within the nationwide hashish financial system. We thank Meeting Member Haney for his management and urge the Legislature to behave prior to it’s too past due.”
Octavia Crockett, a gross sales supervisor at Embarc Sacramento, a proud member of the United Meals and Industrial Staff, and a consultant of the CaCOA, underscored the affect on employees:
“I really like what I do and am proud to be a part of this community-focused trade. Nevertheless it’s onerous out right here,” Crockett stated. “I’ve noticed such a lot of excellent folks lose their jobs as hashish companies fight underneath heavy taxes, unregulated hemp merchandise, and unfair pageant from the unlawful marketplace. A.B. 564 is a commonsense method to lend a hand stay our jobs, give protection to customers, and make the promise of Prop. 64 actual. We want our elected officers to face with us.”
CaCOA may be encouraging individuals to put up letters of enhance for A.B. 564 and to paintings with native governments to undertake resolutions opposing the excise tax build up and urging swift passage of the invoice.
