Roots LA Won’t Increase Prices Despite Upcoming Cannabis Tax Hike
At Roots LA, we’re all about providing our customers with high-quality cannabis products at affordable prices. With California’s cannabis excise tax set to rise by 26.7% on July 1, 2025, we want to make one thing clear: we will not be increasing our prices, despite the tax hike.
What’s Happening with the Tax Increase?
Starting July 1, 2025, the state of California will increase its cannabis excise tax from 15% to 19%. This adjustment is part of a two-year cycle aimed at compensating for the revenue lost when the state eliminated the cultivation tax in 2022. The change in tax rates is a significant development for the cannabis industry, but it’s something that we’ve decided not to pass on to our customers.
How Does This Affect You?
For consumers, this means that the cost of cannabis products at licensed dispensaries will likely increase. The excise tax is applied to the gross receipts from retail sales, which includes the product price, local business taxes, delivery charges, and service fees. This “tax-on-tax” structure can significantly raise the total cost of your purchase.
For example, if you purchase a $35 cannabis product in a city with a 10% local cannabis tax and a $5 delivery fee, the tax base becomes $43.50. At the new 19% excise tax rate, the excise tax would be $8.27, before sales taxes are even added.
Why We’re Keeping Prices the Same
We know that many of our customers are feeling the squeeze of rising prices in all areas of life. Here at Roots LA, we’re committed to keeping cannabis accessible, and that means holding the line on our prices. While the state’s tax increase will impact the industry as a whole, we believe that it’s important to keep our prices stable so that you can continue to count on us for quality cannabis without any added burden.
The Bigger Picture: Supporting the Legal Market
The cannabis industry in California has faced many challenges over the years, from high taxes to competition from the illicit market. By absorbing the cost of this tax increase, we’re doing our part to support the legal cannabis industry and encourage more people to shop at licensed dispensaries like ours. We understand how important it is for the legal market to thrive, and we’re committed to being a reliable source of top-tier cannabis for our community.
What This Means for You
You can continue to shop with confidence at Roots LA knowing that our prices won’t be going up in response to the new cannabis tax. We’re proud to be able to offer the same great selection of cannabis products at the same affordable prices you’ve come to expect. Whether you’re a longtime customer or a first-time visitor, we want you to feel good about where you’re spending your money—and we’ll keep working hard to make sure we offer the best products and prices.
We appreciate your support and loyalty, and we’re excited to continue serving you with the highest level of service and quality cannabis.
Thank you for choosing Roots LA! Stay tuned for more updates, and be sure to check out our online menu for all of our latest products.
