California’s cannabis excise tax is set to increase from 15% to 19% on all products beginning July 1. It’s an increase that some business owners feel would stunt the growth of the state’s cannabis industry.

People packed in and stocked up at Off the Charts in Manteca on Monday. It’s one of the new and few marijuana dispensaries in the city.

Customers like Miguel Gutierrez are feeling burned after learning about the increase in the state’s cannabis tax. He says the constant increase makes it more tempting to turn to the illegal market.

“It adds up, especially with everything else going up,” he said.

Lauren Nair, the store manager at Off the Charts, said that the industry is already struggling with taxes and having to compete with the underground market.

Her store often offers specials to lure more customers.

“We’re trying to sympathize with them because 4% is not a little bit. It’ll be on every product they purchase, so it’ll be a hefty amount,” she said.

The California Department of Tax and Fee Administration is legally required to increase the tax every two years.

Currently, Assembly Bill 564 aims to cap the tax at 15%, but it still needs revenue and tax review.

“Tax is at 15% right now. I can understand how it going up could help a lot with California, but it also is coming out of our customers’ pockets,” Nair said.

Nair said business owners in the industry know the taxes are high, so they have specials constantly.

On average, customers spend $120 to $140 every time they come into Off the Charts. The increase would amount to about $5 extra that the average customer will have to pay.

• Manteca
• Marijuana
• San Joaquin County
• Cannabis