California Department of Tax and Fee Administration Reports
Cannabis Tax Revenues for Fourth Quarter of 2018

Sacramento – The California Department of Tax and Fee Administration (CDTFA) reported revenue numbers today for cannabis sales for the 4^th quarter of 2018. Tax revenue reported by the cannabis industry totaled $103.3 million for 4^th quarter returns due by January 31, 2019, which includes state cultivation, excise, and sales taxes. It does not include tax revenue collected by each jurisdiction.

As of February 14, 2019, California’s cannabis excise tax generated $50.8 million in revenue reported on 4^th quarter returns due by January 31, 2019. The cultivation tax generated $16.4 million and the sales tax generated $36.1 million in reported revenue. Retail sales of medicinal cannabis and medicinal cannabis products are exempt from sales and use taxes if the purchaser provides a valid Medical Marijuana Identification card and valid government-issued identification card.

Previously reported revenue for 3^rd quarter returns was revised to $100.8 million, which included $53.3 million in excise tax, $12.6 million in cultivation tax, and $34.9 million in sales tax.

Revisions to quarterly data are the result of amended and late returns, and other tax return adjustments.

In November 2016, California voters approved Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act. Beginning on January 1, 2018, two new cannabis taxes went into effect: a cultivation tax on all harvested cannabis that enters the commercial market and a 15 percent excise tax upon purchasers of cannabis and cannabis products. In addition, retail sales of cannabis and cannabis products are subject to state and local sales tax.

To learn more, visit the Tax Guide for Cannabis Businesses on the CDTFA website.

California Department of Tax and Fee Administration
Announces New Sales and Use Tax Rates Operative April 1, 2019

Sacramento – The California Department of Tax and Fee Administration (CDTFA) has notified seller’s permit holders that new sales and use tax rates will take effect beginning April 1, 2019. The new rates are the result of voter-approved initiatives.

To find the correct rate for your home or business location, visit www.cdtfa.ca.gov and click the Tax & Fee Rates button. Please note that the new rates will not be available online until April 1, 2019, when they take effect.