By Saleem A. Shareef, Esq., Checkpoint News
On October 2, 2025, California Governor Gavin Newsom signed legislation that expands the cannabis excise tax by amending the definitions of “cannabis” and “cannabis products.” The tax is imposed upon purchasers of cannabis or cannabis products sold in California. (L. 2025, A8 (c. 248), effective 01/01/2026.)
Cannabis
The definition of “cannabis” is amended to include all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, and the resin from glandular trichomes. Prior law excludes industrial hemp. However, the current legislation amends the definition of “industrial hemp” to mean types of the plant Cannabis sativa Linnaeus or any part of that plant with a total tetrahydrocannabinol concentration of no more than 0.3% on a dry weight basis and is limited to only agricultural products, including seeds, propagated plant material, immature or mature plants, harvested plants, mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, or any preparation that does not contain cannabinoids. Total tetrahydrocannabinol concentration includes both delta-9 tetrahydrocannabinol and tetrahydrocannabinolic acid, and must be calculated using the following equation: Total THC concentration (mg/g) +/- the measurement of uncertainty, as defined by the Department of Food and Agriculture.
Cannabis Product
Also, the definition of “cannabis product” is amended to mean a product containing cannabis or cannabis concentrate and includes, but is not limited to, edible, topical, and inhaled products, and products intended for use on, or consumption by, an animal. It is presumed that a product intended for human or animal consumption that contains or purports to contain any tetrahydrocannabinol is a cannabis product, regardless of the nature or source of the cannabinoids. This presumption can be rebutted by evidence showing that the product complies with California Health and Safety Code, Division 104, Part 5, Chapter 9 (commencing with Section 111920).
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