This move will only further oppress an already weak legal market and fuel the thriving illicit market, industry participants said. This move will only further oppress an already weak legal market and fuel the thriving illicit market, according to industry insiders. The California Department of Tax and Fee Administration has announced that it will increase taxes on the regulated cannabis industry yet again. This rate is used to provide the basis for California’s 15% excise tax. The markup rate for the marijuana excise tax will increase from 60% to 80% on New Year’s Day.