Cannabis tax revenues have declined in California year-over-year for the last four years, with total taxable cannabis sales in Q2 2024 down by a third since the same time period in 2021.
California Q2 Cannabis Taxes Down for 4th Consecutive Year
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Data from the Cannabis Tax and Fee Administration (CDTFA) shows that cannabis tax revenue has declined steadily over the past four years, the Press Democrat reports.
According to state data, second-quarter cannabis tax revenue in California has declined year-over-year since 2021, with:
- $361.4 million in Q2 2021,
- $302.3 million in Q2 2022,
- $286.7 million in Q2 2023, and
- $263.1 million in Q2 2024.
Total taxable cannabis sales in California marked a similar decline throughout the same time period, according to the report, with:
- $1.5 billion in Q2 2021,
- $1.4 billion in Q2 2022,
- $1.3 billion in Q2 2023, and
- $1 billion in Q2 2024.
California cannabis sales and tax revenue have continued to decline as the industry grapples with heavy regulation and competition from both the unregulated market and hemp-derived THC products.
Earlier this month, Gov. Gavin Newsom (D) aimed to reign in hemp product retailers with new emergency rules to ban the sale of intoxicating hemp products by requiring all hemp-derived products sold in the state to have “no detectable amount of total THC.” The governor said the goal of the rules was “to prevent children from accessing these dangerous hemp and cannabis products.”
State lawmakers last week approved a bill to allow cannabis consumption lounges, sending the proposal to the governor, who vetoed a similar measure last year.
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