Hemp concentrates count as cannabis, and sellers of presumed cannabis products owe excise tax
Anyone selling a product presumed to be cannabis, such as an unlicensed cannabinoid product not shown to meet hemp rules, owes cannabis excise tax plus a penalty of at least $500. Hemp concentrates count as cannabis concentrate, and the licensed market's temporary hemp ban ends.
Who it affects
Cannabis and hemp businesses, and stores selling cannabinoid products
When
This law took effect on January 1, 2026, but the changes described here start on January 1, 2028.
- : Signed into law
- : Law took effect
- : The changes described here start to apply
Official text
California AB 8: Cannabis: cannabinoids: industrial hemp.
On California Legislative Information. The official text is what counts; read it before you act.
Not legal advice. Plain-English summaries to help you find what changes and when. Not legal advice: read the official text, and ask a lawyer about your situation.