California’s Cannabis Tax Explained

California’s Cannabis Tax Explained
February 27, 2018 Noa

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

explained

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

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