Hey friends,

We want to give you the heads-up about an important change coming to California’s cannabis industry. Starting July 1, 2025, the cannabis excise tax will increase from 15% to 19% of gross receipts on retail cannabis and cannabis products. Unfortunately, that means you might notice a small uptick in prices when you check out, and we want to be totally transparent about why.

So, why the increase?

This change isn’t random. The California Department of Tax and Fee Administration (CDTFA), working with the Department of Finance, is legally required to adjust the tax rate every two years.

This new 19% rate reflects what the state would have collected from the now-defunct cultivation tax. Basically, they took one tax off the growers and adjusted it into the retail end.

What does this mean for you?

As a cannabis retailer, we collect this excise tax at the point of sale. It’s based on the total cost of your cannabis purchase. Whether you’re picking up your favorite flower, that chill edible, or some relaxing CBD, the 19% excise tax will be applied starting July 1st.

We’re in this together!

We’re here to make sure you stay informed and feel good about your choices. We believe in fair pricing, transparency, and always keeping our community informed. And hey, while tax rates might go up, our vibe and quality products stay exactly the same: 🔥

Want the fine print?

If you’re a fellow industry professional or just a curious consumer who likes the nitty-gritty, you can check out the official CDTFA guide here.

Thanks for riding with us through every twist, turn, and tax update. Your support means the world. If you have questions, hit us up anytime.

Stay elevated,
Humble Root