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Tag Archive for California Cannabis Tax Rules

California State Tax Rules For The Cannabis Industry

California Cannabis Tax Rules

The cannabis industry is the new hot evolving industry in CA. California became the first state to legalize medical marijuana in 1996. On November 8, 2016, the state’s voters chose to legalize recreational use of marijuana.

The California Tax and Fee Administration (CDTFA) has put together an online guide to help business owners better understand the tax obligations specific to their cannabis business. In the following article, we will summarize these nuances that business owners need to know about this industry. Also, stay tuned for future articles on this topic.

Taxes Involved

In addition to state sales and use tax, effective January 1, 2018, a 15% excise tax is imposed upon retail purchasers of cannabis and cannabis products.  Additionally, a tax on all harvested cannabis that enters the commercial market is imposed on cultivators at a rate of:

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