Here at Culture Fresno, we believe in transparency. It’s the foundation of everything we do, from how we source our products to how we train our staff. So when something directly impacts your experience and your wallet, we think it’s our responsibility to pull back the curtain and give you the full story.
You may have recently noticed your total at checkout was a little higher than expected. This isn’t a decision we made lightly; it’s the result of a state-mandated increase in the cannabis excise tax that took effect July 1, 2025. We know it’s confusing, so let’s break it down together.
What Exactly Changed?
As of this summer, the California Department of Tax and Fee Administration (CDTFA) increased the cannabis excise tax rate from 15% to 19%.
- What is an excise tax? Unlike sales tax (a percentage added to the final sale price), the cannabis excise tax is a tax imposed on the distribution of cannabis. It’s calculated based on the wholesale cost that dispensaries pay to their distributors. However, by law, we are required to pass this tax on to you, the customer.
- It’s not just the excise tax: Remember, on top of this 19%, you also pay local and state sales tax (which in Fresno, adds up to about 8.975%). So all combined, taxes can make up a significant portion of your final receipt.
Why Did the State Increase the Tax?
The state adjusts this tax rate annually based on market data. The goal is to ensure they collect a specific, predetermined amount of tax revenue. Essentially, because the wholesale price of cannabis has fallen, the tax rate had to be raised to meet the state’s revenue target. While this might make sense on a spreadsheet in Sacramento, we know it feels counterintuitive to you when prices at the register go up.
What This Means for You at Checkout
In practical terms, this increase means you are paying more in taxes for the same products. A purchase that previously had a $15 excise tax might now have a $19 excise tax, plus sales tax.
We hear your frustration. We share it. This industry is already one of the most heavily taxed in the country, and these increases place a heavy burden on you, the consumer, who is simply looking for safe, legal access to cannabis.
Our Commitment to You: Navigating This New Normal
While we can’t control state tax policy, we can control how we respond to it. Our commitment to providing you with a safe, well-informed, and affordable experience is stronger than ever. Here’s how we’re adapting:
- Doubling Down on Value: We are working harder than ever with our partners to curate a menu that includes high-quality, budget-friendly options. Ask our staff about our “Weekly Deals” featuring products that deliver exceptional effects without the premium price tag.
- Transparent Pricing: We believe in no surprises. Our staff is trained to help you understand your receipt and will always be upfront about the total cost, including tax, before you finalize your purchase.
- Amplifying Our Loyalty Program: Your Culture Fresno rewards points are now more valuable than ever. Earn on every purchase and redeem your points to directly offset the cost of products and, yes, even some of the tax. It’s our way of giving power back to you.
- Advocating for You: We are actively supporting industry groups and legislation that fight for fairer tax structures for legal cannabis. The current system unfairly burdens consumers and pushes some back towards the unregulated market. We’re fighting for change because we believe the legal market should be accessible to all.
The Bottom Line
We didn’t ask for this tax hike, and we know you didn’t either. But we promise to continue being your trusted, transparent partner in navigating the complex world of legal cannabis.
Your journey is our journey. We will continue to provide the knowledgeable guidance, safe products, and community focus you expect from us, while doing everything in our power to ensure value remains at the heart of the Culture Fresno experience.
