California Department of Tax and Fee Administration “get’s the munchies”, imposes new taxes on the Marijuana Industry
Beginning January 1, 2018, two new cannabis taxes apply as follow:
1 A 15 percent excise tax is imposed upon purchasers of cannabis and cannabis products. Retailers of cannabis and cannabis products are required to collect the 15 percent excise tax from the purchaser based on the average market price of any retail sale and pay it to their cannabis distributor.
2 A cultivation tax is imposed upon cannabis cultivators on all harvested cannabis that enters the commercial market. Cannabis cultivators are required to pay the cultivation tax to either their distributor or their manufacturer. The rate of the cultivation tax is:
◦ $9.25 per dry-weight ounce of cannabis flowers that enter the commercial market, and
◦ $2.75 per dry-weight ounce of cannabis leaves that enter the commercial market.
For additional rules check out this link:
Make sure you remain in compliance in this new (ok, newly legal) and booming industry.
For additional consultation contact me at firstname.lastname@example.org (I work for cash.... smile)