Advocating for fair taxation of cannabis to 1) advance safe, equitable access for medical cannabis patients and consumers; 2) foster a competitive licensed cannabis market; and 3) support a diverse ecosystem of small cannabis businesses.
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Cannabis Tax Issues
State Cannabis Excise Tax
*UPDATES*
Attend the California NORML/Americans for Safe Access Citizen Lobby Day in Sacramento on March 24, 2025 to meet with your state representatives and urge them to prevent further cannabis tax increases!
In 2022, California made a significant shift in its approach to cannabis taxation, amending its tax law to eliminate the cultivation tax on cannabis products entering the commercial market. While this change was seen as a step forward in easing the financial burden on cannabis producers, it came with an important caveat: the state would make adjustments to the cannabis excise tax to offset the loss in revenue from the cultivation tax. As a result, California’s cannabis excise tax is set to increase from 15% to 19% starting in July of 2025, unless action is taken by state lawmakers.
San Diego Cannabis Business Tax
*UPDATES*
On March 10, 2025, the San Diego City Council voted to increase the cannabis business tax from 8% to 10%, bringing total taxes in the region to 32.75%. However, several councilmembers expressed some reservations about the impact of such an increase on the City’s revenue, citing concerns about the potential for consumers to turn to neighboring cities or the unlicensed market, and it is possible that the issue will be revisited again at a later date. Medical cannabis patients and other stakeholders are urged to continue contacting their city councilmembers to share how this tax increase is affecting them.
In the City of San Diego, consumers pay over 30% in taxes at the final point of sale—including a 10% local cannabis business tax, a 15% cannabis excise tax, and a 7.75% city-wide sales tax. Yet, despite the already-high cost of legal cannabis, Mayor Todd Gloria proposed a 2% increase in the cannabis business tax as part of efforts to shore up the City’s struggling budget. On March 10, the City Council adopted this increase, bringing local tax rates on cannabis to a hefty 17.75%. The tax increase goes into affect on May 1st, 2025.
On Our Blog
In the Media
- Cannabis Advocates Torch San Diego’s Plan to Increase Business Tax on Pot [OB Rag]
- San Diego raises cannabis tax to help plug budget hole [San Diego Union Tribune]
- California’s 2nd Largest City to Hike Cannabis Tax 25% Amid $258M Deficit [Cannabis Business Times]
- San Diego increases retail cannabis tax rates from 8 to 10% [NBC News]
- San Diego considers raising cannabis business tax — and possibly losing money [KPBS]
- Opinion: Todd Gloria needs to think twice before raising San Diego’s cannabis tax [San Diego Cannabis Times]
Upload Your Receipts
To demonstrate the high cost of purchasing legal cannabis, the San Diego chapter of Americans for Safe Access invites consumers to upload receipts for cannabis items purchased in the City (particularly medicinal products such as CBD, gel capsules, etc).
