Cannabis sellers need to register with the Department of Tax and Fee Administration

Anyone planning on selling cannabis products starting January 1st you must register with the California Department of Tax and Fee Administration for a sellers permit.

Posted: Nov. 8, 2017 2:13 PM
Updated: Nov. 8, 2017 2:16 PM

Anyone planning on selling cannabis products starting January 1st you must register with the California Department of Tax and Fee Administration for a sellers permit.

Cannabis cultivators, processors, manufacturers, retailers, microbusinesses, and distributors who make sales are required to obtain and maintain a seller’s permit as a prerequisite for applying for a license.

You can apply for a license with the Bureau of Cannabis Control, the Department of Food and Agriculture, or the Department of Public Health.

People who already have a seller’s permit do not need to register for a new one.
In addition the distributers of cannabis and cannabis products must also register with the CDTFA for a cannabis tax permit. This is separate from a seller’s permit.

Registration for the cannabis tax permit will be available on November 20, 2017.

Beginning January 1st two new cannabis taxes will be in effect.

There will be a 15% tax on purchases of cannabis and cannabis products. Retailers are required to collect the tax from the purchaser and pay it to the cannabis distributer.

Also a tax on cultivation of cannabis will be $9.25 per dry weight ounce of cannabis flowers, and $2.75 per dry weight ounce of cannabis leaves.

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