Budget & Taxes (Sales Tax)

AB 307 eliminates a 15% excise tax on wholesale cannabis sales (affecting growers and distributors) and increases the retail tax on cannabis products from 10% to 14.25% of the sales price. Revenue from the new retail tax must first cover costs for the Cannabis Compliance Board before any remaining funds go to the State Education Fund. The bill also removes obsolete provisions about valuing wholesale cannabis and updates funding sources for the Education Fund. This change may impact local government budgets, as noted in the fiscal report.