California Has Generated $8.4 Billion In Marijuana Tax Revenue, Governor Announces

California’s governor is touting the state’s large haul of marijuana tax revenue since voters legalized recreational cannabis in 2016, saying that the money “helps fund programs that benefit Californians, including childcare and early childhood development, youth substance abuse prevention, medical research and environmental recovery.”

Gov. Gavin Newsom (D) on Wednesday said that legal marijuana sales have generated nearly $8.4 billion in tax revenue for California communities. That includes almost $4.5 billion worth of cannabis excise taxes and nearly $3.4 billion in sales taxes.

“We are building a legal cannabis market that generates billions for Californians, and going after the illicit operators who undermine it,” Newsom said. “That’s public safety—protect consumers, support the businesses playing by the rules and put the revenue to work in our communities.”

The governor’s office said in the second quarter of this year alone, the state collected more than a quarter of a billion dollars ($261.7 million) in marijuana taxes.

Officials are also highlighting the administration’s efforts to crack down on illicit cannabis activity, singling out an August seizure of $13.3 million worth of illicit marijuana and tobacco products.

“Taking illicit cannabis off the streets protects California’s law-abiding licensed businesses and is another step toward a fairer marketplace for those who follow the rules, pay their taxes, and invest in California,” California Department of Tax and Fee Administration (CDTFA) Director Trista Gonzalez said. “Removal and proper disposal of the illicit cannabis protects unwitting consumers while ensuring the product never makes it to the marketplace.”

Earlier this week, the governor signed legislation to more clearly define the types of marijuana packaging and labeling that is prohibited due to appealing to children.

Newsom recently took credit for helping to lead the push for the state to legalize marijuana and discussed his own limited experience with using cannabis.

Last October, however, the governor vetoed a bill that would have allowed certain marijuana microbusinesses to ship medical cannabis products directly to patients via common carriers like FedEx and UPS, stating that the proposal “would be burdensome and overly complex to administer.”

Newsom did sign a bill earlier that month aimed at streamlining research on marijuana and psychedelics.

—
Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.
—

Last September, the governor also signed a measure into law to put a pause on a recently enacted tax hike on marijuana products.

Meanwhile, a lawmaker spoke to Marijuana moment about her decision to put her own bill to legalize cannabis dispensary drive-thru windows on hold for now.

California’s treasurer recently said the marijuana legalization law that voters approved a decade ago has been a “complete failure” and should be replaced with a new ballot initiative that prioritizes consumers and small businesses.

Republican gubernatorial candidate Steve Hilton, who is endorsed by President Donald Trump, recently told Marijuana Moment that taxes and regulations on cannabis are “too high.”