What does the Initiative do?

The California Psilocybin Decriminalization Initiative (hereafter, “the Initiative”) would legalize and regulate psilocybin mushrooms for medical and therapeutic use, and decriminalize them for personal, spiritual, religious, and dietary use.

Does the Initiative legalize the sale of psilocybin mushrooms?

The Initiative would create a legal framework in which sales of psilocybin mushrooms would be regulated by the California Department of Food and Agriculture and the California Department of Public Health.

Would sales of psilocybin mushrooms be taxed?

Sales of psilocybin mushrooms would not be subject to an excise tax. In the case of State-legal adult-use cannabis sales in California, high excise tax rates have deterred consumers from purchasing cannabis legally, thereby diverting sales to the illegal market. The Initiative deliberately prohibits imposing an excise tax on psilocybin mushrooms, in order to incentivize consumers to purchase from regulated, licensed retailers.

Under the Initiative, psilocybin mushrooms would be regulated as a foodstuff, and therefore may be subject to local sales tax, depending on the form in which the mushrooms are sold. For example, whole psilocybin mushrooms would not be subject to sales tax, however, a dietary supplement containing psilocybin mushrooms would be subject to sales tax (as is the case with all dietary supplements). Psilocybin mushrooms intended for religious/spiritual or medical/therapeutic use would be exempt from sales tax.

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Psilocybin Initiative: Update on Implementation and Implication for Future Psychedelic Decriminalization Initiatives

Psilocybin Initiative: Update on Implementation and Implication for Future Psychedelic Decriminalization Initiatives