Story perspectives

California's Cannabis Crisis: 62% Illicit Market Amid Tax Hike

9/5/2025

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Summary

Story summary

A 2024 report reveals only 38% of cannabis in California comes from licensed growers, highlighting a robust illicit market.
The cannabis excise tax rose from 15% to 19% on July 1, raising concerns about excessive taxation.
Consumers favor illegal cannabis for its lower prices, according to Amy O’Gorman Jenkins.
Drug cartels are reportedly setting up marijuana farms in California, fueling the illicit market.
Governor Newsom criticized federal immigration tactics during raids on cannabis farms, which included arrests of minors.

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Story summary

A 2024 report reveals only 38% of cannabis in California comes from licensed growers, highlighting a robust illicit market.
The cannabis excise tax rose from 15% to 19% on July 1, raising concerns about excessive taxation.
Consumers favor illegal cannabis for its lower prices, according to Amy O’Gorman Jenkins.
Drug cartels are reportedly setting up marijuana farms in California, fueling the illicit market.
Governor Newsom criticized federal immigration tactics during raids on cannabis farms, which included arrests of minors.