California's tax and fee department, the California Department of Tax and Fee Administration (CDTFA), has seized over $168 million in illicit cannabis and tobacco products since 2019, including nearly $22 million during the first half of 2026. This significant recovery is part of the state's ongoing, comprehensive strategy to combat the illegal drug marketplace and protect regulated businesses.
Governor Gavin Newsom emphasized the dual benefit of these actions, saying, "California's work doesn't stop at shutting down illegal operations. We're protecting the legal businesses that play by the rules by enforcing our tax laws, removing illicit products from the marketplace, and ensuring the revenues that fund vital state programs are protected. This coordinated approach strengthens the legal cannabis market while holding bad actors accountable." California Government Operations Secretary Nick Maduros added that these recovered funds are essential for public services like schools, roads, and first responders.
CDTFA Director Trista Gonzalez highlighted the critical role of inspectors and investigators in identifying tax fraud and recovering unpaid revenues. The state has also invested $227 million in grants to local governments to combat illicit cannabis activity, bolstering the Unified Cannabis Enforcement Task Force, which has seized over $1.3 billion in illicit cannabis through coordinated operations involving multiple state and federal partners.
Beyond cannabis, California's enforcement efforts extend to other illicit products such as intoxicating hemp and prohibited kratom. Coordinated site visits have led to high compliance rates among licensees and the removal of thousands of illegal products from shelves, underscoring the state's broad commitment to consumer protection and strengthening regulated markets.