California’s Cannabis Tax Explained
California’s Cannabis Tax Explained
If you’ve visited a dispensary since January 1st, you’ve probably noticed a marked increase in the price of cannabis. Taxes are a staggering 25% or more in many areas which feels a lot less impactful when you purchase a gram than when you purchase an ounce.
If you’re a California medical patient, you may be wondering why you’re still paying tax. Here’s how California’s cannabis taxes break down:
There are 3 taxes applicable to cannabis sales; the mandatory 15% excise tax, your municipality’s tax, plus its sales tax.
Medical patients who hold a California Department of Public Health state-issued Medical Marijuana Program card are only exempt from sales tax.
Here’s an example from Sonoma County:
Adult-use consumers or a person holding just a doctor’s recommendation pay:
15% CA cannabis excise tax
2% Sonoma County business tax
8.125% Sonoma County sales tax
For a total of 25.125%
Holders of the CDPH CA state-issued card would be exempt from the 8.125% in county tax but they still pay the other cannabis taxes.
15% CA cannabis excise tax
2% Sonoma County business tax
Total of 17% tax
Not happy with the taxes? Contact your local and state representatives!
If you’re a California medical patient, you may be wondering why you’re still paying tax. Here’s how California’s cannabis taxes break down:
There are 3 taxes applicable to cannabis sales; the mandatory 15% excise tax, your municipality’s tax, plus its sales tax.
Medical patients who hold a California Department of Public Health state-issued Medical Marijuana Program card are only exempt from sales tax.
Here’s an example from Sonoma County:
Adult-use consumers or a person holding just a doctor’s recommendation pay:
15% CA cannabis excise tax
2% Sonoma County business tax
8.125% Sonoma County sales tax
For a total of 25.125%
Holders of the CDPH CA state-issued card would be exempt from the 8.125% in county tax but they still pay the other cannabis taxes.
15% CA cannabis excise tax
2% Sonoma County business tax