Gov. Gavin Newsom (D-Calif) said the state’s regulated cannabis industry has generated nearly $8.4 billion in tax revenue since legal sales began in 2018, supporting programs across the state.
California Cannabis Market Generates $8.4 Billion
On Wednesday, Newsom said that California’s regulated cannabis market has produced a “whopping $8.4B” in tax revenue for childcare, youth substance abuse prevention, medical research and environmental recovery.
“California’s regulated cannabis market has generated a whopping $8.4B in tax revenue for childcare, youth substance abuse prevention, medical research, and environmental recovery,” Newsom said.
The governor added that the state would “keep strengthening our legal market and go after bad actors trying to undermine it.”
California Cannabis Crackdown
According to the Newsom administration, in the second quarter of 2026 alone, cannabis retailers remitted $261.7 million in cannabis excise and sales taxes.
California also highlighted a recent seizure of approximately $13.3 million in illicit cannabis and tobacco products from a Los Angeles County warehouse.
The haul included 280,072 illegally labeled cannabis packages, 107,441 edible packages and 84,463 THC vape pens.
“Taking illicit cannabis off the streets protects California’s law-abiding licensed businesses,” California Department of Tax and Fee Administration Director Trista Gonzalez said.
California Wealth Tax Concerns
Earlier, former White House economic adviser Tomas Philipson argued that California’s proposed one-time 5% wealth tax could ultimately reduce overall state tax revenue if it drives wealthy residents and investment out of the state.
He argued the loss of existing tax revenue could have outweighed the revenue generated by the new tax.
Billionaire entrepreneur Mark Cuban warned that the tax could discourage investment and push startup founders and companies out of California.
He said the measure could have hurt founders who were “cash poor, stock rich,” adding, “Ideology is not a strategy.”
Steve Hilton warned that the tax could have driven Silicon Valley’s top talent, entrepreneurs and investment out of the state.
He called it an “asset-seizure tax” and “economic suicide,” arguing it could have damaged California’s technology and innovation economy.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
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