At Meadow, we’re committed to standing up for what matters—fair access to medicine, compassion for patients, and equity in cannabis policy. Yesterday, we took action by delivering the Patient Equity in Medical Cannabis letter to Governor Newsom, Senator Wiener, and Assemblymember Haney, advocating for tax relief for medical cannabis patients.
This issue strikes at the heart of what the medical cannabis movement was built on: ensuring patients have safe, affordable access to medicine. Yet today, patients face unnecessary barriers that undermine this promise.
Unlike any other medication prescribed by a doctor, medical cannabis is subject to sales tax unless patients endure the long, expensive, and intrusive process of obtaining a state-issued Medical Marijuana Identification Card (MMIC).
This is not only inequitable—it’s causing California’s once-thriving medical cannabis ecosystem to die.
The Issue: Tax Inequity is Harming Patients
For any other medication, a doctor’s prescription is enough to exempt it from sales tax. But for cannabis patients, a valid doctor’s recommendation is not sufficient. Instead, they are required to:
- Obtain a Medical Marijuana Identification Card (MMIC) through their local Department of Public Health.
- Pay costly application fees.
- Undergo a time-consuming process that many find burdensome and inaccessible.
The result? Fewer patients are obtaining MMICs every year. In 2023, there were just 3,196 cardholders statewide. This year, that number has dropped to 2,800. California’s current policy not only adds unnecessary barriers for patients, it undermines the original spirit of Prop 215 and Prop 64—protecting medical access and patient rights.
Patients who forego the MMIC process either end up paying a premium for their medicine with sales tax compounded on top of excise and local taxes, or they turn to the unregulated market.
Why This Matters
Patients Deserve Fair Treatment: A doctor’s recommendation should be treated the same as any other prescription—without requiring an extra layer of bureaucracy and cost. California’s tax policies discriminate against patients who cannot or choose not to obtain an MMIC.
The Medical Market is Dying: The medical cannabis market in California has shrunk dramatically since adult-use legalization. High taxes and regulatory burdens have pushed patients to the unregulated market, where products are untested and potentially dangerous but much less expensive.
Compassion is Lacking: Compassion programs, which exempt patients from sales tax, are voluntary and largely non-existent. Most dispensaries simply cannot afford to run these programs due to high operating costs, leaving patients without viable options for tax relief.
Public Health is at Risk: When taxes make regulated medical cannabis unaffordable, patients turn to the illicit market. This creates serious health risks for vulnerable populations relying on cannabis for conditions like chronic pain, PTSD, insomnia, epilepsy, and cancer.
The Solution: Treat Cannabis Like Medicine
Our campaign aims to eliminate the MMIC requirement for sales tax exemption and allow patients with a valid doctor’s recommendation to receive fair tax treatment—just like they would for any other medicine. This small, common-sense change would:
- Restore affordability for medical cannabis patients.
- Encourage patients to return to the regulated market.
- Increase public safety by reducing reliance on untested products.
- Uphold the voter-backed protections of Prop 215 and Prop 64.
Taking Action
At Meadow, we believe this issue is a matter of fairness, compassion, and public health. California started with medical cannabis, and it’s time to honor those roots by ensuring equitable access to medicine for all patients.
We are working alongside California’s leading trade organizations, advocates, and patient groups to push for this critical change in the next legislative session. Together, we’ve drafted a letter to Governor Newsom, Senator Wiener, and Assemblymember Haney calling for action.
But we can’t do it alone. We need the community’s voice to make this change a reality.
How You Can Help
- Sign Your Support for our “No Tax on Medicine” Campaign. Every voice matters in showing lawmakers that this change is needed now.
- Share This Post with your community. Spread the word to patients, operators, and advocates who care about access to affordable, regulated medical cannabis.
- Engage with Lawmakers. Reach out to your state representatives to share why this issue is important to you.
Standing Together for Medical Patients
California’s medical cannabis market was built on compassion. It’s time to return to those roots. By removing unnecessary barriers like the MMIC, we can ensure patients have safe, affordable access to the medicine they rely on—just as Prop 215 intended.
Fairness. Compassion. Access. Let’s make it happen.
Full Letter to Governor Newsom, Senator Wiener, and Assemblymember Haney
Dear Governor Newsom, Senator Wiener, and Assemblymember Haney,
On behalf of California's leading cannabis trade, labor, advocacy, veterans, and patient organizations, as well as individual stakeholders throughout the industry, we write to seek your help in addressing California's inconsistent tax policies as it relates to medical cannabis patients.
Our position is that cannabis patients should not be subject to California Sales Tax if they possess a valid doctor's recommendation for the therapeutic use of cannabis. This position is supported by California law. In all other cases, save individual taxation, including untaxed cannabis disbursement to a patient pursuant to a Compassion Program, a doctor’s recommendation is considered sufficient to exempt one from payment of sales taxes. We are hopeful that you will work with us to correct the one remaining inconsistency: State sales taxes imposed on medical cannabis patients who are not part of Compassion Programs.
Prop. 215 still exists. The definition of “Qualified Patient” still includes any Californian who uses cannabis for medical purposes with a valid physician’s recommendation.1 Qualified patients have never been – and still are not required, by design – to register or obtain an identification card in order to qualify for the legal protections of Prop. 215. Indeed, the Adult Use of Marijuana Act (“Prop. 64”), which legalized commercial adult use of cannabis, includes the strongest language possible restricting changes to Prop. 215 – “nothing in this section shall be construed or interpreted to amend, repeal, affect, restrict, or preempt laws pertaining to the Compassionate Use Act of 1996.” However, California’s sales tax policy discriminates sharply between qualified patients with and without identification cards – one pays sales tax and the other does not. This policy has no legal or policy justification that is consistent with the voter-endorsed provisions of Prop. 215 and Prop. 64. Until voters say differently, all qualified patients should be afforded sales tax relief, not just those with the geography or resources to register for a county identification card. Why is California making medical cannabis more expensive for certain patients over others?
According to a February 2, 2022, email from Christina Dempsey, Acting Deputy Director of External Affairs of the DCC, per the regulations, “either an ID card or a physician's recommendation is acceptable for compassion care patients.”
Patients enrolled in a compassion program are exempt from sales tax. However, patients who cannot find a compassion program in their area or can’t qualify for such a program must pay State sales tax at the check-out counter, despite the fact that they are medical cannabis patients in possession of the very same document (a valid doctor’s recommendation) which qualifies a medical cannabis patient enrolled in a compassion program for a sales tax exemption.
It should be noted that compassion programs are voluntary programs underwritten by dispensaries or specific programs funded by donations. At a time when most cannabis businesses are facing extinction due to taxation, over-regulation, and a huge illicit market, few are able to offer compassion programs. Proof of this rests in the annual report on Tax Exemptions for Medicinal Cannabis published by the Legislative Analyst’s Office (see https://lao.ca.gov/Publications/Report/4608) which shows a shockingly low number of compassion program tax exemptions.
As demonstrated by the LAO Report referred to above, compassion programs in California are largely non-existent. Given this, the only way to ensure that patients, particularly those who are poor, are treated equally under the Tax and Revenue Code is to allow all patients possessing a valid doctor’s recommendation relief from California’s Sales Tax.
Currently, compassion program patients need only a doctor’s recommendation for tax relief. Patients who are not attached to a compassion program must acquire a state-issued Medical Marijuana Identification Card (MMIC) in addition to their doctor’s recommendations to qualify for tax relief. Excluding a patient from the tax exemption based solely upon registering for a state-issued card is arguably discriminatory, in that it excludes tax relief for those without the ability to pay for the card, regardless of their medical need.
The intention of Prop 64 was not only to expand legal access to adult-use cannabis but also to preserve a well-established medical cannabis market. However, in California today, we have a contracting medical market, dropping from 3,196 MMIC card holders in 2023 to just 2,800 card holders in 2024. Offering sales tax relief to cannabis patients would still require them to pay the excise tax, which when combined with local taxation, brings the total tax burden down to an affordable level, mirroring what patients paid in taxes prior to legalization.
Prior to legalization, there were millions of California patients with doctor’s recommendations, achieving over $2.5B in medical sales in 2017. Post legalization, due to unbearably high taxes, medical cannabis patients have been forced to seek their medicine in the unregulated market, where untested products have already been a proven danger to their health. The State has lost millions in excise taxes as well.
Medicine is not subject to California sales tax (see CDTFA Regulation 1591). In the interests of fairness, equity, and compassion this should apply to medical cannabis patients as well.
Our organizations view exempting all cannabis patients from California Sales Tax as critical in providing an affordable pathway for patients. Medical cannabis patients who are relieved of California Sales Taxes will be disincentivized from illicit market purchases. Their return to the regulated market will increase the excise tax and local tax revenue.
We are hopeful that this change can be included in legislation contemplated by the Governor in the next year’s legislative season. Our representative, David Hua, will be contacting your offices shortly to ascertain whether virtual meetings to discuss the above might be possible. Should you have any questions or concerns David Hua can be reached at: David@getmeadow.com
Sincerely,
David Hua, CEO, Meadow
Kenny Morrison, President, California Cannabis Manufacturers Association
Lauren Coté, Co-Board Chair, Cannabis Distribution Association
Johnny Delaplane, President, San Francisco Cannabis Retailers Alliance
Jonatan Cvetko, Executive Director, UCBA
David Goldman, President, San Francisco Chapter, Brownie Mary Democratic Club
Kandice Hawes-Lopez, Founder and Executive Director, Orange County NORML
Sarah Armstrong, JD, Outreach Chair Los Angeles and Ventura Counties, Americans for Safe Access
Keith Cich, President, Sunderstorm Inc.
Erin Gore, Founder & CEO, Garden Society
Bobby Vecchio, Co-Founder & CEO, Herb Delivery
Vincent Ning, Co-Founder & CEO, Nabis
Stacey Hronowski, Co-Founder & CEO, Canix
Ted Lichtenberger, Co-Founder & CEO, Flower Co
Steve Albarran, Co-Founder & CEO, Confident Cannabis
Bert Vick, Co-Founder & CEO, Rev Genomics
Nohtal Partansky, Co-Founder & CEO, Sorting Robotics
Steven Jung, COO, PAX
Ryan Miller, Founder, Operation EVAC
Aaron Newsom, COO & Co-Founder, Santa Cruz Veterans Alliance
Eric Goepel, Founder & CEO, Veterans Cannabis Coalition
Hirsh Jain, Founder, Ananda Strategy
Shabnam Malek, Partner, Brand and Branch
David Belsky, CEO, FlowerHire
Amber Morelli, Regional Sales Manager, Pure Vape
Aaron Flynn, CEO & Co-Founder, Gold Seal
Gretchen Miller, CEO & Co-Founder, Kiskanu
Lara L DeCaro, Partner, Leland, Parachini, Steinberg, Matzger & Melnick LLP
Sara Payan, Public Education Officer, Apothecarium
Andrea Greenberg, Founder, Society Jane
Joyce Cenali, COO, Big Rock Partners & Sonoma Hills Farm
Justin Pressfield, Associate Vice President, Weedmaps
Darren Story, CFO, Coastal Sun
Jordan Kuhl, General Manager, Dr. Greenthumbs LAX
Wesley Hein, Head of Global Expansion, Mammoth Heavy Hitters
Andrew DeAngelo, Founder, Andrew DeAngelo Consulting LLC
Ezra Malmuth, CEO, Atlas Edibles
Benjamin Larson, CEO & Co-Founder, Vertosa
Josef Airone, Founder and Director, The Sweetleaf Collective
Whitney Beatty, CEO and Founder, Josephine & Billies and Apothecarry Brands
Tiffany Devitt, Chief Compliance Officer, CannaCraft
Ron Gershoni, CEO & Co-Founder, Jetty Extracts
Judy Yee, CEO & Co-Founder, K-Zen Beverages
Jamie Feaster, CEO and CoFounder, Country
Tuan Le, Business Development, Brite
Nate Landau, COO, Snowtill
Jason Horst, Managing Partner, Horst Legal Counsel
Colleen King, VP Growth, Ciclo
David Kaufmann, Partner, Slap Consulting
Dylan Ferman, CEO, Genius Pipe
Neil Dellacava, Business Development, HERBL
Tegan Thompson, VP Marketing, Petalfast
Dustin Gibbens, Co-Founder/COO, 965 Solutions
Alexa Goldberg, Sales Director, Psychedelics Today
Terryn Buxton, CEO, Oakland Extracts
Elissa Hambrecht, Managing Member, Napa Valley Fume
Leah Cerri, Manager, Select
Frances Villaneuve, CEO, Clarified
Nicole Howell & Ariel Clark, Partners, Clark Howell LLP
Manndie Tingler, CMO, CannaGram Delivery & Head of Brand Relations, Conception Nurseries, CRO and Co-Founder, Khemia Manufacturing
Amanda Reiman, Founder, Personal Plants
Jimmy Levi, VP Business Operations, Chemistry
Morris Kelly, CEO & Founder, SF Roots CA
Omar Figueroa, Founder, Law Offices of Omar Figueroa
Chelsea Sutula, Owner & CEO, Sespe Creek Collective
Michael Kraft, Compliance Officer, Papa & Barkley
Dana Leigh Cisneros, Esq., Managing Attorney, The Cisneros Firm dba Cannabis Corporate Law Firm
Jesus Sahagun Jr., CEO, Phog Center
Konstantine Kostas, Consultant, Synchronicity Holistic
Randy Cruzado, CEO, The Growcery
Mike Mekk, CEO, Mission Organic
Sean Kali-rai, Founder, Silicon Valley Cannabis Alliance
Hilary O'Brien, Director of Operations, Ivy Hill Cannabis & Green Remedy Collective
Michael Kay, Owner GE Granada Hills, DBA Green Earth Co
Jessica Bray, Director of Inventory and Purchasing, Green Cross of Torrance
Zachary Pitts, CEO, Ganja Goddess
Carly Ekenstam, Director of Operations & Security, Cruz Verde Inc. dba Original Green Cross
Mina Mishrikey, Partner and Head of Investments, Merida Capital Holdings
Cristina Arantes, Operations Manager, IncrediMeds
Anthony Jenkins, CEO & Co-Founder, Next Level
Stephanie Pangelinan, Regional Manager, Foggy Daze
Julie Germenis, General Manager, Eagle Eye
Mary Aigner, General Manager, Love In It Inc dba Sol de Mendocino
Gillian Levy, Co-Founder, Humboldt Apothecary
Dawn Bazurto, CEO/Founder, Lady Gemini
Jakki Hernandez and Dana Cisneros, Board Members, Orange County NORML
Tiffany Wright, COO, La Brea Collective Compliance
Kip Clifton, Board Director, Purextracts
Kevin Watts, CEO, TFA, Inc
Micah Anderson, CEO, Leef Holdings
Zachary Selvin, President, LitCo
Nikita Baranovskiy, Management, Infinity Medical Alliance INC
Brooke Rosel, General Manager, The Sweetleaf Collective
Cristina De Sousa, IncrediMeds
Mario Barajas, GreenLift
Kevin Reed, Owner, The Green Cross
Nancy Do, CEO and Founder, Endo Industries
Aaron Justis, President, Buds & Roses
Kimberly Cargile, CEO, A Therapeutic Alternative
Amir Gresham, Board Member, Social Equity Owners & Workers Association
Colleen Costello, Director of Communications, Meadow
Robert Lee, Founder, Evolved Microdoses
Brendan Kelly, CEO, CEAS
Laura Bell, Director of Manufacturing & Lead Hash Maker, Heritage Hash Co.
Chris Romaine, Owner, Pacific Coast Photo DBA Kandid Kush
Matthew Ingram, President & Co-Founder, Proof
Nicole Daryanani, Sr. Sourcing Manager, Kiva Confections
Anthony Alegrete, COO & Founder, 40 Tons
Shannon DeGrooms, Executive Director, This is Jane Project
Jake Kuczeruk, Director of Sales, New Frontier Data
Tommy Ramos, Board of Directors (MCBA)
Madison Mullis, Publicist, Trailblaze
Pamela Epstein, Chief Legal & Regulatory Officer, Terpene Belt Inc.
Greg Kouvaras, CEO & Founder, Greenline
Dina Nagib, Principal Consultant, Grass Goddess Consulting
Jerred Kiloh, CEO & Founder, The Higher Path
Kerri Accardi, Media Producer, 420MEDIA + Cannected TV
Lauren Mendelsohn, Junior Partner, Law Offices of Omar Figueroa
Brian Holler, Chief Revenue Officer, Beard Bros. Pharms & Media
Vien Trinh, Product Marketing Manager, Flourish Software
Jeff Pehrson, Producer, Planted with Sara Payan
Eric Rosete, Owner, Farcaster Creative
Sean McDermott, owner, The Grove La Mesa
Mitch Kulick, Partner and Co-Founder, Feuerstein Kulick LLp
Jesse Duncan
Brett Yader, CEO & Co-Founder, Flower Supply
Brian Applegarth, Founder Cannabis Travel Authority
Steph Sherer, Founder & Executive Director, Americans for Safe Access
Megan Prusynski, Marketing Director, Applegarth Strategies
Chiah Rodriques, co-owner, Operations Director, Arcanna Flowers
James M Beatty, Co-Founder Arcanna Flowers
Jesse Stout, Esq.
Alex Shamil
JohnPaul Williams II, Founder, J Williams Designs
Omar Figueroa, Founder & Managing Partner, The Law Offices of Omar Figueroa, Inc.
Bridget May, CEO and Founder
Vincent Patterson Owner Founder The Flowershop llc
Shoshana Patterson The Flower Shop LLC Manger
Victoria Schanzle, President Cherry Valley Farms LLC
Crystin Johnson, Director of Sales, Pure Beauty
Mike Rosati
Maureen Dube-Savage MS RD, Founder of More Canna Care.llc
