California Cannabis Tax Revenues Reach $502M So Far This Year

California cannabis tax revenues have totaled $502.8 million during the first two quarters of this year, according to state data outlined by KTLA5. Tax revenues from cannabis sales topped $243.1 million during the first quarter and $259.7 million during the second quarter, according to state Department of Tax and Fee Administration (CDTFA) figures. 

During the second quarter, the state took in $147.3 million in cannabis excise taxes and $112.4 million in sales taxes from cannabis businesses throughout the state.    

“The second-quarter figures also reflect the state’s vendor compensation program, which allowed eligible cannabis vendors to retain more than $1.3 million during the quarter.” — CDTFA via KTLA5 

Since California voter-approved Proposition 64 took effect in January 2018, cannabis sales in the state have generated more than $7.3 billion in tax revenue, including nearly $3.9 billion in cannabis excise taxes and more than $2.9 billion in sales taxes. 

Last week, state lawmakers approved a bill to reverse a recent 25% tax hike on the state’s cannabis industry that took effect July 1. If signed by Gov. Gavin Newsom (D), the measure would maintain the previous rate of 15% until 2028. The initial tax hike was caused by a previous law that removed a cannabis cultivation tax but included automatic adjustments to the industry’s tax rate if cannabis revenues began to fall, which they did.