With many California license holders claiming they can’t compete because of high state and local taxes, the new legislation would cut the state excise tax from 15% to 11% and suspend a cultivation tax that charges $148 per pound.

The tax reduction should give the legal pot industry new vigor, said Beau Whitney, senior economist at New Frontier Data, a data analytics firm focused on the cannabis industry.

The new legislation “will lower the overall price for consumers at the register, which will also reduce the differential between illicit and legal prices,” he said.