August 9, 2026
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California Tax Agency Seizes $168M in Illicit Cannabis and Tobacco Since 2019

Getty. CDTFA Director said investigators examine businesses’ records and partner with other agencies.

Officials said the work complements law enforcement operations that target illegal cultivation, manufacturing and trafficking.

By Carlos Reyes

The California Department of Tax and Fee Administration has seized more than $168 million in illicit cannabis and tobacco products since 2019, including nearly $22 million during the first six months of 2026.

Officials said the work complements law enforcement operations that target illegal cultivation, manufacturing and trafficking.

“When California voters approved Proposition 64 and legalized cannabis, they also approved a tax structure to ensure that cannabis contributes to the state’s revenue,” said Government Operations Secretary Nick Maduros. “We can’t let illicit operators siphon away dollars that are needed for schools, roads, parks, first responders and all the other services on which Californians rely.”

CDTFA Director Trista Gonzalez said inspectors and investigators examine businesses’ financial records and partner with other agencies to hold violators accountable while protecting tax revenue that funds public services.

The tax agency’s efforts are part of broader state enforcement. The Unified Cannabis Enforcement Task Force, which includes CDTFA and other agencies, has seized more than $1.3 billion in illicit cannabis through coordinated operations. In June, the state announced $227 million in grants to local governments to combat illegal cannabis activity.

Enforcement has also targeted other products. After 23,174 site visits, officials reported a 99.32% compliance rate with restrictions on intoxicating hemp among Alcoholic Beverage Control licensees and removed 7,403 illegal products.

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