Annual Report on Tax Exemptions for Medicinal Cannabis

Annual Report on Tax Exemptions for Medicinal Cannabis Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only. The LAO is unable to guarantee the accuracy of this translation and is therefore not liable for any inaccurate information resulting from the translation application tool. Choose your language: × Skip to main content Home --> Policy Areas Capital Outlay, Infrastructure Criminal Justice Economy and Taxes Education Environment and Natural Resources Health and Human Services Local Government State Budget Condition Transportation Other Government Areas Publications The Budget Propositions and Initiatives Staff Careers About Us Search LAO Contact Seth Kerstein See More Publications Like This Back to the Top --> Tweet June 11, 2026 Annual Report on Tax Exemptions for Medicinal Cannabis Statutory Data Reporting Requirement. Chapter 920 of 2024 (AB 2555, Quirk-Silva) renewed an existing tax exemption for certain donations of medical cannabis products. The law directs our office to submit an annual report containing data on three outcomes related to the exemptions: the number of medicinal cannabis patients served, the amount of medicinal cannabis products donated, and the amount of tax revenue lost. This report fulfills that statutory requirement for 2025. Data Source. Our office obtained the data described below from the Department of Cannabis Control and the California Department of Tax and Fee Administration (CDTFA). The data come from the state s Metrc track and trace system for licensed cannabis. In particular, the data reflect transactions that businesses identified as medicinal donations in calendar year 2025. Number of Patients Served. In 2025, licensees identified 19,877 transactions as medicinal donations. The data do not tell us who received each donation. Some patients likely received more than one donation in 2025, so this total likely overstates the number of distinct patients. For example, if a patient received six donations in 2025, then the transaction total includes that person six times. Amounts of Products Donated. As shown in Figure 1, licensees donated a wide variety of products in 2025. Figure 1 Amounts of Products Donated Under AB 2555 Exemption in 2025 Product Total Packages Capsule 1,756 Edible 12,764 Extract 11,293 Flower (eighth) 10,852 Flower (gram) 3,526 Flower (half ounce) 2,690 Flower (ounce) 597 Flower (quarter) 1,626 Flower (other) 2612 Other Concentrate 3,854 Pre Roll Flower 21,626 Pre Roll Infused 3959 Pre Roll Leaf 610 Shake (half ounce) 14 Shake (quarter) 186 Tincture 1,054 Topical 2,190 Vape Cartridge 12,293 AB 2555 = Chapter 920 of 2024 (AB 2555, Quirk Silva). Use Tax Revenue Lost. CDTFA estimates that the 2025 revenue loss from the AB 2555 tax exemption was roughly $68,000. Revenue from the use tax goes to the state s General Fund and to local programs. Subscribe | California State Legislature | Online Voter Registration | Privacy Policy | Accessibility Legislative Analyst's Office | The California Legislature's Nonpartisan Fiscal and Policy Advisor 925 L Street, Suite 1000 Sacramento, CA 95814 | (916) 445-4656