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Tax rates and responsibilities for cannabis business

Beginning January 1, 2018 the cannabis cultivation tax and excise tax will take effect.

Posted: Nov 17, 2017 6:14 PM

Beginning January 1, 2018 the cannabis cultivation tax and excise tax will take effect.

Cultivators are responsible for paying cultivation tax. The current cultivation tax rates are $9.25 per dry-weight ounce of cannabis flowers, and $2.75 per dry-weight ounce of cannabis leaves.

Both cannabis and cannabis products are subject to and excise tax. Retailers are responsible for collecting the cannabis excise tax at the time of the retail sale and for paying tax to the distributer, who reports and pays the cannabis excise tax to the California Department of Tax and Fee Administration (CDTFA). The current excise tax rate is 15 percent of the “average market price”.

Sales and use tax applies to retail sales of cannabis and cannabis products after the excise tax is added.

Cannabis retailers, cultivators, manufacturers, and distributers making sales must register with the CDTFA for a sellers permit.

Sales and use tax permit registration is available online beginning November 20, 2017. You can register for all the proper tax permits for your cannabis business at www.cdtfa.ca.gov

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 122168

Reported Deaths: 4444
CountyConfirmedDeaths
Los Angeles596922532
Riverside8303345
San Diego7798283
Orange6783165
San Bernardino5650209
Alameda364197
Santa Clara2850144
San Francisco264443
Imperial249330
Kern246245
San Mateo224484
Tulare208392
Fresno194437
Santa Barbara171414
Contra Costa154738
Sacramento149058
Ventura119035
Kings11876
San Joaquin102436
Stanislaus79230
Monterey62110
Sonoma5934
Solano55922
Marin52517
Merced3107
San Luis Obispo2881
Placer2599
Santa Cruz2192
Yolo21624
Madera1293
Napa1263
Humboldt1044
El Dorado980
San Benito962
Butte601
Nevada491
Sutter482
Del Norte470
Shasta404
Mono371
Mendocino330
Yuba311
Lake300
Inyo201
Glenn170
Calaveras160
Mariposa161
Amador100
Siskiyou90
Colusa70
Tehama61
Tuolumne50
Lassen50
Plumas40
Alpine20
Sierra10
Trinity10
Unassigned00
Chico
Scattered Clouds
79° wxIcon
Hi: 87° Lo: 59°
Feels Like: 79°
Oroville
Clear
83° wxIcon
Hi: 88° Lo: 59°
Feels Like: 83°
Paradise
Scattered Clouds
79° wxIcon
Hi: 82° Lo: 56°
Feels Like: 79°
Chester
Clear
83° wxIcon
Hi: 75° Lo: 47°
Feels Like: 83°
Red Bluff
Clear
79° wxIcon
Hi: 89° Lo: 59°
Feels Like: 80°
Willows
Scattered Clouds
79° wxIcon
Hi: 93° Lo: 57°
Feels Like: 79°
Today will be nice but much cooler weather this weekend with a chance of showers and thunderstorms, mostly in the north valley and mountains. We heat up again next week.
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