Bill Maher and Woody Harrelson used their shared cannabis dispensary as the backdrop for a pointed critique of California’s marijuana tax policy Monday, recording the latest episode of Mr. Maher’s “Club Random” podcast at The Woods, their West Hollywood pot shop, on what is informally observed as the marijuana holiday.
“We’re trying. It’s not easy to make a business work in California,” Mr. Maher said, explaining why he chose to film the April 20 episode on location at the store.
Mr. Harrelson, the “True Detective” and “Natural Born Killers” actor, agreed, saying the state “messes with every business.”
Mr. Maher went further, saying California “deserves to be s—- on” over its tax and regulatory policies and suggesting the burden is driving residents and businesses out of the state.
The two directed much of their criticism at California’s cannabis tax structure. Mr. Harrelson said the state taxes dispensaries at 35% — a rate he called more than double any comparable product — and blocks cannabis businesses from writing off expenses. The latter complaint is a reference to Section 280E of the federal tax code, a provision that bars marijuana companies from claiming the same deductions available to businesses in other industries. California lawmakers have taken steps to decouple the state tax code from the federal restriction, as have a number of other states with legal cannabis.
California’s state excise tax on retail cannabis sales stands at 15%, though it briefly climbed to 19% in 2025 before legislators brought it back down in September. When local excise taxes and standard sales taxes are layered on top, the effective combined rate can exceed 30%.
The two also touched on the cannabis industry’s persistent banking access problems, with Mr. Maher recalling a period when dispensaries were forced to operate largely in cash because banks refused to take on marijuana clients — making them targets for robbery. The Woods was among the businesses burglarized in what appeared to be a string of crimes targeting cannabis shops in the region.
Despite the grievances, Mr. Harrelson said the dispensary is “slowly picking up.”
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