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California Cannabis Operators Warn That New Tax Hike ‘Could Kill This Industry’

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“We have no objections to how cannabis tax revenues are being spent. All we’re maintaining is that you can’t squeeze blood from a stone.”

By Alexei Koseff, CalMatters

This story was originally published by CalMatters. Sign up for their newsletters.

A substantial tax hike for California’s faltering legal cannabis market took effect on Tuesday, despite an aggressive industry campaign to suspend the increase that won the support of Gov. Gavin Newsom (D) and other political leaders.

The excise tax for weed is 19 percent as of July 1, up from 15 percent—the result of a political deal three years ago that was intended to buy more time for the legal market to stabilize but which cannabis business operators now warn could chase away customers and push them over the edge.

“I’ve never experienced collective malaise like this,” said Genine Coleman, founder of the Origins Council, which represents small farmers in the historic Northern California growing region known as the Emerald Triangle. “People are so concerned with their survival and so deflated. It’s a dangerous space.”

An excise tax is a levy imposed on a good by the state before sales taxes are applied. While a push to freeze the cannabis excise tax through the state budget failed last month, a bill that would lower the rate back to 15 percent for the next six years is still moving through the Legislature. Newsom has pledged to sign a proposal halting the tax increase if it reaches his desk.

“I’m intimately familiar with the conversations around that and have great confidence that we’ll achieve our stated goals,” Newsom said during a press conference Monday.

Cannabis growers, dispensary owners and consumer advocates rallied for months at the state Capitol to avert the tax increase, which they argue could deal a fatal blow to businesses already operating with slim margins.

The price of weed has plummeted since voters legalized recreational cannabis through Proposition 64 in 2016, the result of a rush to overproduction even as most cities and counties in the state remain closed off to retail sales. Meanwhile, California is struggling to bring its market out of the shadows; the state Department of Cannabis Control estimates that legal sales still comprise less than 40 percent of weed consumption in California, which the industry attributes to state and local excise and sales taxes that can increase prices for consumers by a third.

Taxable cannabis sales in California dropped to $1.09 billion for the first quarter of 2025, down 30 percent from their peak in early 2021 and the lowest quarterly sales in five years.

Tax was intended to offset cannabis harms

It’s a crisis for the industry—communities that traditionally relied on cannabis production have collapsed economically—but also a problem for the state’s finances. Tax revenues from weed sales provide guaranteed funding for child care slots, environmental cleanup, substance abuse education and impaired driving prevention efforts as California faces a growing budget deficit.

“This was a poor time to say, ‘let’s starve the state even more,’” said Tom Wheeler, the executive director of the Humboldt County-based Environmental Protection Information Center, which joined a coalition of child care, environmental and tribal advocacy groups to lobby against a tax freeze.

He said it was important to uphold the promise of Proposition 64, which includes using cannabis tax revenue for programs that offset the harms caused by the cannabis industry, and expressed skepticism that the tax increase would hurt sales.

“I think the average consumer would not notice that,” Wheeler said. “At what point do we stop cutting taxes to benefit the industry?”

The 2022 agreement offered relief to growers by eliminating a cultivation tax, but it allowed state regulators, after a three-year pause, to raise the excise tax to make up for the lost revenue.

During budget negotiations last month, Newsom—who also wants to begin using cannabis tax revenue for enforcement against illegal cultivation—and Assembly Speaker Robert Rivas, a Democrat from Salinas, supported extending the pause on the excise tax. They could not reach a compromise with Senate President Pro Tem Mike McGuire, a Healdsburg Democrat who notably represents the Emerald Triangle.

In a statement, McGuire said “taxes on California’s overregulated cannabis industry have been a train wreck for years,” but he raised concerns about the fiscal implications of freezing the tax. State analysts estimate that increasing it to 19 percent could yield about $180 million per year for the state.

“It’s important to acknowledge that any freeze will create a budget shortfall which would impact critical community programs funded by cannabis tax dollars,” he said.

California could ‘forfeit a huge opportunity’

Industry representatives warn that further raising taxes will push price-sensitive customers back into the illicit market, hurting businesses teetering on the edge and actually lowering cannabis tax revenue in the long run.

“The math isn’t there,” said Amy O’Gorman Jenkins, executive director and lobbyist for the California Cannabis Operators Association. “We have no objections to how cannabis tax revenues are being spent. All we’re maintaining is that you can’t squeeze blood from a stone.”

They haven’t given up, though repealing the tax increase now that it’s taken effect will be even more challenging.

Assembly Bill 564, which would set the cannabis excise tax at 15 percent through the end of June 2031, passed the Assembly unanimously in May and now awaits consideration in the Senate.

Assemblymember Matt Haney, the San Francisco Democrat who introduced the measure, said he will keep fighting to get it to the governor. But he was furious that the Senate allowed the tax hike to take effect, which he said sent a message to legal cannabis operators that there is no incentive to follow the rules.

“This tax could kill this industry and there’s still not enough being done,” he said. “California is going to forfeit what should have been a huge opportunity for our state.”

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

California Is Using $30 Million In Marijuana Revenue To Support Research On Consumer Preferences, Crop Yields And Sustainability

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Slipknot’s Sid Wilson Proposes to Kelly Osbourne During Ozzy’s Farewell Show

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Yesterday in front of Ozzy Osbourne, Sharon, and their rock royalty friends  Sid Wilson, Slipknot’s longtime DJ and sonic architect, got down on one knee and asked Kelly Osbourne to marry him.

She said yes.

It happened backstage during Ozzy Osbourne’s final-ever performance with Black Sabbath, as part of the historic Back to the Beginning reunion concert in Birmingham. A farewell for one era, and the start of something new.

The ring? A one-of-a-kind monster with too many diamonds to count, from world-famous celebrity jeweler Pascal Mouawad, known for making the Miss Universe and Miss USA crowns, and a close friend of Sid’s. Designed in secret and revealed during this historic event, the moment was raw, heartfelt, and unforgettable.

Why High Times?

For over a decade, Sid Wilson has been quietly working on something else behind the scenes: #ZERO, a cannabis strain born from years of selective breeding and personal investment.

Released earlier this year in collaboration with California cultivator Mickey Flowers, #ZERO blends Chem Dog 91, SFV OG, and Thai genetics, producing towering plants with massive structure and intense effects. It was crafted with care, hand-watered using mountain runoff from Mt. Baldy, stress-tested in full sun at desert-level heat.

“This strain is like Jurassic Park,” says Mickey. “Big buds, high CO₂ intake, and a knockout high if you’re not ready.”

But beyond the genetics and the buzz, there’s intention. Sid is donating 100% of his profits from #ZERO to charities supporting Parkinson’s and cancer research, a personal mission rooted in respect for Ozzy and a desire to give back.

The strain debuted at Caviland Dispensary in Los Angeles and quickly expanded to shelves in six states: Arizona, California, Nevada, Michigan, Oklahoma, and New Mexico.

It’s not the reason for the proposal, but it’s part of why High Times was trusted to tell this story.

Legacy, Love, and the Loudest Goodbye

The show marked the end of a chapter: Black Sabbath reunited. A stage packed with legends. One final bow for the band that changed everything.

And after the encore faded and the crowd dispersed, something deeply personal unfolded — not for the spotlight, but for love.

We’re grateful to share it with you.

Because sometimes, the loudest thing in the room is the quiet act of asking someone to build a life with you.

Sometimes, the most powerful story isn’t about fame or fire; it’s about heart.

Check out the pics, Ozzy and Sharon were seated nearby and as Sid was about to propose, Ozzy yelled out “Fuck off you’re not marrying my daughter!” Lol

Cover image via Instagram.





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Marijuana Users In Iowa Are Engaged And Active Citizens, Survey Shows—Smashing ‘Lazy Stoner’ Stereotypes

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“Many of today’s cannabis consumers are ‘middle American’ adults, employed, own a home, vote regularly, pay their taxes and are involved in their communities.”

By Bob Sillick, Iowa Capital Dispatch

For many years, cannabis users were characterized as a cult of stoners: young, often unemployed, party animals. That sector still exists in some form, however, many of today’s cannabis consumers are “middle American” adults, employed, own a home, vote regularly, pay their taxes and are involved in their communities.

That is the general profile of adult cannabis consumers across the country and in Des Moines, according to a recent survey by Consumer Research Around Cannabis/The Media Audit.

The Media Audit, the parent company of Consumer Research Around Cannabis, is an international research company serving 80+ local markets in the U.S. and Canada for more than 20 years. It started gathering data about cannabis use and attitudes in 2016.

Although the sale of adult recreational cannabis is illegal in Iowa, the survey found 16.2 percent of all adults age 18+ in Des Moines said they used or bought cannabis during the past month, or the statistical equivalent of approximately 140,000 adults.

The smallest percentage in the following table, monthly usage in Des Moines, is still substantial—and suggests a pent-up market. Unleashing the recreational cannabis market in Des Moines and all of Iowa would likely generate jobs and significant taxes for the state—money now escaping across the borders.

The survey data from Des Moines and 42 other markets was aggregated and showed 24.1 percent of adults 18+ used or bought cannabis during the past month. (Local factors affect these percentages and comparisons.)

For 15 years, Jonathan Caulkins, H. Guyford Stever professor of operations research and public policy at Carnegie Mellon University’s Heinz College, has been studying cannabis legalization. He is also the author of several books on the topic and a member of the Commission on the North American Opioid Crisis.

Caulkins’s research fine-tunes the results of the Des Moines survey from Consumer Research Around Cannabis.

“From 1992 through 2023, the most recent year for which we have released data, the trend has been towards an enormous increase in the number of people who are using cannabis daily or near daily. They account for 80 percent of recreational cannabis sales. They dominate the market,” Caulkins said.

In states like Iowa that haven’t legalized adult recreational cannabis, Caulkins expects when they do, the middle of the market will be blue-collar high-school graduates, adults 25–40 who are employed but not affluent.

He has also seen a gender trend as more states allow the sale of recreational cannabis.

“As cannabis has become more legal, the male/female use gap has become noticeably smaller. When it was an illegal action or a risky action, there was a much bigger gender gap, but that gap is declining. Use by men is increasing with legalization, use by women is increasing even more,” he said.

Cannabis consumers in Des Moines also align with the 43-market survey when comparing gender and income. Millennials at 42.3 percent and Gen Xers at 35.5 percent account for three-quarters of the adult cannabis consumers in Des Moines who bought or used cannabis during the past month. These percentages are slightly more than the 43-market survey at 41.5 percent and 28.2 percent, respectively. The 33.8 percent of cannabis consumers in Des Moines with household incomes of $35,000 to $75,000 is also slightly more than the 43-market survey at 29.6 percent.

The Consumer Research Around Cannabis data also profiles cannabis consumers at a more granular level. The “household profile” category shows which three were the largest purchasers or users of cannabis during the past year, or 33.8 percent collectively.

  • Affluent, no children at home: $75,000+ household income
  • Affluent white-collar worker: Family income $100,000+
  • Affluent Boomers: $100,000+ household income

Comparing cannabis purchasers and users in Des Moines with the 43-market survey by their employment status and occupation reveals some contrasts. The data indicates that many in Des Moines are working and contributing to the local economy.

Voting is a meaningful measure of civic responsibility. Millennials at 22 percent, Gen Xers at 54.4 percent and Baby Boomers at 12 percent who purchased or used cannabis during the past month voted in local, state and national elections, compared to 33 percent, 32.1 percent and 24.6 percent, respectively, in the 43-market aggregate survey.

This particular data point may have ramifications for future legislative efforts to legalize adult recreational cannabis sales in Iowa. While the Iowa Legislature’s majority Republicans have rebuffed Democrats’ proposals to legalize recreational marijuana, advocates suggest time may be on their side if an increasing body of citizens support legalization with their votes.

Marijuana’s Schedule I Status ‘Traps Researchers In A Paradox,’ Federally Funded Scientists Say

This story was first published by Iowa Capital Dispatch.

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Here’s Where To Buy Legal Recreational Marijuana In Delaware Next Month

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All seven medical marijuana operators have converted to adult-use cannabis sales, with over 10 locations, which will be up and running in August.

By Brianna Hill, Spotlight Delaware

Delaware will begin recreational marijuana sales on August 1, state officials announced Tuesday, putting the first definitive date on the start of a long-awaited rollout for the $280 million industry.

Customers on that first day will be heading to existing medical marijuana businesses though, as the burgeoning legal market has yet to develop the dozens of new businesses licensed for recreational-only sales.

That decision has already sparked criticism from advocates and residents, who say it puts other businesses at an unfair disadvantage.

For years, medical marijuana dispensaries have denied that they sought the handful of licenses available at the time in order to get a first-adopter advantage for the eventual recreational market. But now that is occurring.

“The existing medical marijuana dispensaries lobbied for less competition and to begin sales before new businesses, and now, with the [Office of the Marijuana Commissioner]-caused delays, they will end up with first sales and absolutely no competition,” Zoë Patchell, president of the Delaware Cannabis Advocacy Network, which advocated for years for legalization, wrote in a Facebook post.

Delaware medical marijuana dispensaries

Map: Delaware medical marijuana dispensaries

Jacob Owens, Spotlight Delaware / Source: Delaware Office of the Marijuana Commissioner / Created with Datawrapper

Delaware’s adult-use marijuana industry, which was legalized in 2023, allowed for 125 licensees to operate throughout the state across cultivation, manufacturing, testing and retail sales. The operators were chosen at the end of last year through a lottery system that saw more than 1,200 individuals apply.

Entering the licensing lottery alone required individuals to submit detailed applications and fees. Most application fees cost $5,000, with the active license itself costing up to $10,000.

Medical marijuana operators seeking to enter the recreational market were required to pay steep conversion fees—$100,000 for retail or manufacturing licenses and $200,000 for cultivation.

The state used the revenue to create a $4 million reimbursement fund for social equity applicants, defined as individuals with prior marijuana-related convictions or those from communities disproportionately impacted by prior marijuana enforcement.

Since March, business operators have been awaiting clarity from the Office of the Marijuana Commissioner (OMC), the state office in charge of regulating the industry, on when sales could legally begin.

The market’s launch was originally slated for April but faced delays after the state failed to secure FBI approval to conduct background checks on licensees.

As of June 18, 43 individuals have cleared their background checks, according to OMC spokeswoman Keila Montalvo. The office did not respond to requests for information on how many conditional licenses have been issued.

Even as an official date is set, state lawmakers are still trying to revise the law that made recreational sales legal.

The law permitted municipalities to prohibit marijuana businesses from their jurisdictions and gave counties broad authority to dictate where they could locate, but those allowances have led a third of Delaware towns and cities to opt out of allowing marijuana shops and Sussex County to place significant restrictions on locations.

A bill to lessen those restrictions has passed both the House and Senate and now awaits consideration from Gov. Matt Meyer (D).

All seven medical marijuana operators have converted to adult-use cannabis sales, with over 10 locations, which will be up and running in August.

Given the ongoing barriers faced by other licensees, including strict local zoning rules, delayed funding for social equity applicants and pending conditional license approvals, the early start for medical marijuana businesses could give them a major head start in shaping the market.

“Our focus is on building a safe, equitable, and accountable marijuana market that delivers real benefits to Delawareans. We will continue to issue conditional licenses to previously selected applicants to ensure they can begin operations once active,” Joshua Sanderlin, Delaware’s new marijuana commissioner, said in a statement.

This story was first published by Spotlight Delaware.

8 In 10 Marijuana Consumers Use It As A Substitute For Prescription Drugs, New Survey Finds

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