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California Department of Tax and Fee Administration

Adds ‘Fresh’ Category for Cannabis Cultivation Tax

The California Department of Tax and Fee Administration (CDTFA) has added a new category and rate for the cannabis cultivation tax, which took effect on January 1, 2018.

Proposition 64, which was approved by voters on November 8, 2016, established a cultivation tax based on the dry-weight ounce of cannabis flowers and leaves. The CDTFA has added a new cannabis cultivation tax category for fresh cannabis plants at a rate of $1.29 per ounce. The cultivation tax rates are:

$9.25 per dry-weight ounce of cannabis flowers,

$2.75 per dry-weight ounce of cannabis leaves, and

$1.29 per ounce of fresh cannabis plant.

All fresh cannabis plants must be weighed within two hours of harvesting.

Cultivators are responsible for paying the cultivation tax on all harvested cannabis entering the commercial market to the distributor (or to the manufacturer if that is where the first transfer or sale of unprocessed cannabis takes place). Manufacturers who collect the cultivation tax are required to pay the tax to the distributor. The distributor reports and pays the cultivation tax to the CDTFA. Cultivation rates are also posted on our website.

For more information, read our Tax Guide for Cannabis Businesses on the CDTFA website. If you have additional questions, you may call our Customer Service Center at 1-800-400-7115 (TTY:711) Monday through Friday, 8:00 a.m. to 5:00 p.m. (Pacific time), except state holidays.

California Department of Tax and Fee Administration

Holds Free Small Business Tax Seminar in El Monte

The California Department of Tax and Fee Administration invites business owners and aspiring entrepreneurs to attend a free Small Business Tax Seminar in El Monte on Thursday, January 25, 2018.

Those looking for assistance with state and federal tax issues, as well as those who want to expand their business knowledge, will benefit from informative presentations. Topics include avoiding common sales and use tax problems, employee versus independent contractor, better business through better records, and forms of ownership. Representatives from the California Department of Tax and Fee Administration, Employment Development Department, Franchise Tax Board, and Internal Revenue Service will conduct presentations and answer questions.

Event: Small Business Tax Seminar

Date: Thursday, January 25, 2018

Time: 8:30 a.m. to 12:30 p.m. (registration begins at 8:00 a.m.)

Place: El Monte Community Center

Grace T. Black Auditorium

3130 Tyler Avenue

El Monte, CA 91731

Free parking

Registration: 1-888-847-9652 or online

Learn more about a variety of other in-person classes and online seminars.

Note: The following 30-second video PSA is available for your use.

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