Placerville council backs AB 564, asks state to halt July excise‑tax increase on cannabis sales

The Placerville City Council voted unanimously March 11 to send a letter urging state lawmakers to stop a scheduled increase in California’s cannabis excise tax and to support Assembly Bill 564.

City staff said the tax increase is already scheduled to take effect July 1 but that AB 564 would prevent that automatic rise. Annie Aubrey, director of Chuck’s Wellness Center, told the council that steep taxes have contributed to licensed cannabis retailers exiting the market and driving consumers to the illicit market. Aubrey cited California Department of Tax and Fee Administration data showing a year‑end retail downturn and said many licensed businesses have closed since 2020.

Councilmembers who spoke in favor of sending the letter described the current combined tax burden on retail cannabis as “outrageous” and said an automatic increase could further push consumers to illicit sellers. No fiscal impact for the city was identified in the letter itself; staff provided a revised version on the council dais to correct an earlier drafting error and to refer specifically to AB 564.

A motion to send the letter passed on a roll call vote with all five members voting aye. The council authorized staff and community supporters to carry the city’s position to legislative staffers during upcoming lobbying and advocacy days.