California Marijuana Taxes for Cannabis Retailers Made Simple - IndicaOnline
Friday, Dec 22, 2017

Marijuana businesses across California will be subject to new cannabis taxes starting January 1st. Depending on where your dispensary does business the tax rate can fluctuate. There are many questions and quite a bit of confusion when it comes to marijuana taxes for cannabis retailers.

Fortunately, the California Department of Tax and Fee Administration has release a video tutorial to simplify the new cannabis tax code. Basically there will be three different municipalities marijuana dispensaries will be paying taxes to: State taxes, District taxes, and City or County taxes. State marijuana taxes will be divided into three different categories: sales tax, excise tax, and use tax.

Today we’ll walk you through each tax mandate and provide your with some resources to help your dispensary understand the marijuana taxes that apply to you.

Marijuana Sales Tax

Every transaction made from your dispensary POS system will be taxed. Marijuana sales tax applies to cannabis flower, cannabis infused products, and cannabis related accessories. There are some exemption for medicinal cannabis sales but generally speaking every sale must include sales tax.