California’s cannabis tax revenue drops to lowest point in years

The legalization of marijuana in California is working as it was planned.  Make it legal, then the cartels and gangs can sell pot on the street.  The police are unable to tell the difference between store bought weed and street corner weed.  This gives cover to the criminals.

“The California Department of Tax and Fee Administration reported fourth quarter returns of $219 million. 

• That includes $127.8 million in cannabis excise tax and $91.2 million in sales tax. 
• The fourth quarter of 2024 ultimately had the lowest cannabis tax revenue since the first quarter of 2020. Every other quarter since then reported at least $249 million in revenue.”

The goal of legalization was to help the criminals—and it is working in California.

California’s cannabis tax revenue drops to lowest point in years

The low total to end last year may not be as bad as it looks, since cannabis businesses in Los Angeles County have an extended deadline to file their taxes due to the wildfires.

by Daniel Gligich, The Sun,  3/5/25    https://sjvsun.com/california/californias-cannabis-tax-revenue-drops-to-lowest-point-in-years/

The big picture: The California Department of Tax and Fee Administration reported fourth quarter returns of $219 million. 

• That includes $127.8 million in cannabis excise tax and $91.2 million in sales tax. 
• The fourth quarter of 2024 ultimately had the lowest cannabis tax revenue since the first quarter of 2020. Every other quarter since then reported at least $249 million in revenue. 

What we’re watching: The low revenue total for the fourth quarter of 2024 was driven in part by the destructive wildfires in the Los Angeles area. 

• As part of a relief package, California Gov. Gavin Newsom ordered a three-month return filing and payment extension for taxpayers in Los Angeles County, which applies to the cannabis tax. 
• Some tax revenue from the fourth quarter of 2024 will not be reported until the extended deadline comes on April 30. 

Zoom out: California’s total revenue since it started collecting the cannabis tax in 2018 is now over $6.7 billion. 

• The total is made up of $3.5 billion in the excise tax, $2.7 billion in the sales tax, and $500 million in the cultivation tax, which was eliminated in 2022.