California’s Cannabis Tax Hike Sparks Industry Concerns
Governor Gavin Newsom announced a 26% increase in the cannabis excise tax, raising it from 15% to 19%, effective July 1, 2025. This move aims to compensate for declining tax revenues but has drawn criticism from industry leaders who fear it will further disadvantage the legal market against unregulated competitors. Assemblymember Matt Haney has introduced legislation to halt the tax increase, which has passed a committee unanimously.
New York’s Cannabis Market Sees Price Drops Amid Expansion
New York’s legal cannabis industry is experiencing significant price reductions as the number of licensed dispensaries has grown from 41 at the end of 2023 to 368. Prices for concentrates and vapes have decreased by 15%, edibles by 14%, and flower by 5%. While consumers benefit from lower prices, the surge in dispensaries has led to a decline in average monthly sales per store. New York Post
Pennsylvania Lawmakers Renew Push for Cannabis Legalization
In Pennsylvania, a bipartisan effort is underway to legalize recreational cannabis. Representatives Emily Kinkead (D) and Abby Major (R) have introduced legislation aiming to privatize dispensaries to garner Republican support. Governor Josh Shapiro supports the initiative, highlighting potential annual tax revenues of $250 million. However, challenges remain, including opposition to provisions like cannabis-related criminal expungement.
