--- title: California Bill Proposes $900 Million Tax Loss to Curb Black Market Cannabis Sales description: The California Assembly proposed a bill is focused on reducing black market cannabis sales by temporarily reducing the excise tax from 15% to 11% until 2022. The Assembly Committee on Appropriates will hold a public hearing on the bill tomorrow, May 1, 2019. The Assembly Appropriations analysis report shows that the bill would result in […] image: https://cdn.prod.website-files.com/66525ec138843cc1ccb1c325/68c301ebaa36be33aa2af8f7_1a3f16114a452999cc4d7d6b36ae1602_Obedio%20march%20of%20progress.png --- [Skip to content](https://hs.getobedio.com/blog/2019/04/30/2019-4-30-california-bill-proposes-900-million-tax-loss-to-curb-black-market-cannabis-sales#main-content) [![Obedio logo with black text and an orange graphic composed of four circles and a diagonal arrow pointing up and right.](https://cdn.prod.website-files.com/66525ec138843cc1ccb1c325/66529844eddaa630d6da1b42_obedio%20gold%20for%20white%20background.png)](https://getobedio.com) [Team](https://www.getobedio.com/team) [Pricing](https://www.getobedio.com/pricing) [Contact](https://www.getobedio.com/demo) [Blog](https://www.getobedio.com/blog) [Login](https://obed.io/v4/login) ![](https://hs.getobedio.com/hs-fs/hubfs/Imported_Blog_Media/ebc03-esteban-lopez-346908-unsplash.jpg?width=2500&height=1666&name=ebc03-esteban-lopez-346908-unsplash.jpg) California # California Bill Proposes $900 Million Tax Loss to Curb Black Market Cannabis Sales ![Susan Ameel](https://7528315.fs1.hubspotusercontent-na1.net/hub/7528315/hubfs/raw_assets/public/mV0_d-cms-elevate-theme_hubspot/elevate/images/avatar-placeholder.jpg?width=48&height=48&name=avatar-placeholder.jpg) Susan Ameel April 30, 2019 The California Assembly proposed[a bill](http://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=201920200AB286)is focused on reducing black market cannabis sales by temporarily reducing the excise tax from 15% to 11% until 2022. The Assembly Committee on Appropriates will hold a public hearing on the bill tomorrow, May 1, 2019. The [Assembly Appropriations analysis report](http://leginfo.legislature.ca.gov/faces/billAnalysisClient.xhtml?bill_id=201920200AB286) shows that the bill would result in a $900 million tax loss for California between 2019-2022. This loss would be in addition to the lower than expected tax revenues produced by the cannabis industry in fiscal year 2018-2019 ($270 million versus projected $350 million). The report indicates that other factors allow the black market to offer competitive pricing including local taxes, licensing and compliance requirements including testing, and banking restrictions. The committee may decide to take a longer term wait and see approach before slashing tax revenues. Finally, the staff notes that, even if the state does lower the excise tax, local municipalities can fill that void by increasing local tax rates. ## Share this post [mailto:https%3A%2F%2Fhs.getobedio.com%2Fblog%2F2019%2F04%2F30%2F2019-4-30-california-bill-proposes-900-million-tax-loss-to-curb-black-market-cannabis-sales](mailto:https%3A%2F%2Fhs.getobedio.com%2Fblog%2F2019%2F04%2F30%2F2019-4-30-california-bill-proposes-900-million-tax-loss-to-curb-black-market-cannabis-sales) ## Keep reading ### [California Ballot Measure Local Municipalities California voters will decide 118 local tax measures and $8.07 billion in bond requests on November 3](https://hs.getobedio.com/blog/california-voters-will-decide-118-local-tax-measures-and-8.07-billion-in-bond-requests-on-november-3) ### [Local Ordinance Zoning Ordinance Development Data Federal Realty Asks La Mesa to Approve a 165,000-Square-Foot Bass Pro Shops Where Macy's Stood at Grossmont Center](https://hs.getobedio.com/blog/federal-realty-asks-la-mesa-to-approve-a-165000-square-foot-bass-pro-shops-where-macys-stood-at-grossmont-center) [![Obedio your municipal data source](https://hs.getobedio.com/hs-fs/hubfs/google%20workspace-1.png?width=100&height=41&name=google%20workspace-1.png "Obedio your municipal data source")](https://getobedio.com) Obedio's business intelligence platform provides data and insights from over 25,000 municipalities, enabling retail, manufacturing, finance, real estate, and government clients to make informed decisions, assess risk, and identify opportunities. **Data Source & Liability Disclaimer:** The data presented on this website is aggregated from various official government and public entities ("The Original Government Sources"). 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