California Gov. Gavin Newsom signed a bill Monday to roll back a steep tax increase on the state’s cannabis industry, giving the legal market a bit of breathing room.

Known as AB 564, the legislation not only reverses the 25% excise tax increase on the cannabis industry but also sets the state’s cannabis excise tax rate at 15% until 2028, according to a release from the governor’s press office.

“We’re rolling back this cannabis tax hike so the legal market can continue to grow, consumers can access safe products, and our local communities see the benefits,” Newsom said in a statement.

In addition to cutting taxes on the Golden State’s cannabis industry, Newsom’s administration has also stepped up its long-term enforcement efforts against illegal operators.

The Unified Cannabis Enforcement Taskforce has seized and destroyed more than 317 tons, or more than 635,303 pounds, of illegal cannabis estimated to be worth $890 million.

Assemblymember Matt Haney, a Democrat who sponsored the bill, said it “helps level the playing field.”

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