Bill > AB3248

This bill reduces the cannabis excise tax rate from 15% to 5% of the gross receipts of any retail sale by a cannabis retailer, effective January 1, 2025. The bill also requires the California Department of Tax and Fee Administration to adjust the cannabis excise tax rate every two years to generate an amount of revenue that would have been collected from the previously discontinued cultivation tax. Additionally, the bill declares that its provisions further the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure that imposed the cannabis excise tax and cultivation tax. Finally, the bill takes effect immediately as a tax levy.