California Department of Tax and Fee Administration (CDTFA) | 420bizconnect.com

California has not completed the taxation requirements for the Cannabis Marijuana industry – Click here for more info..
On November 8, 2016,California Voters approved and passed Proposition 64, Control, Regulate and Tax Adult Use of Marijuana Act.

For Information on Marijuana Cannabis licensing permitting contact 420 biz connect.

New Details– On November 8, 2016, The golden state voters approved Proposal 64, Control, Control and also Tax Adult Use Marijuana Act. To align the demands for licensing as well as law of medical and adult-use of industrial cannabis, Recommendation 64 has been lately modified by Senate Costs (SB) 94. To name a few changes, SB 94 rescinded the Medical Marijuana Regulation and also Safety And Security Act (MCRSA) and included certain arrangements of the MCRSA in the licensing stipulations of Proposition 64. The combined stipulations are currently known as the Medicinal and Adult-Use of Cannabis Law and also Safety Act (MAUCRSA), and also the term cannabis was changed throughout the legislation to the term marijuana.

Effective November 9, 2016, certain sales of medical marijuana are exempt from sales and also utilize tax. (See the Retailers area, under the heading, Proposition 64 Exempts Specific Medical Cannabis Sales from Sales as well as Use Tax).

Beginning January 1, 2018, two new cannabis taxes apply as follow:

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.
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.
Senate Bill (SB) 94, which was approved by the Governor on June 27, 2017, amended several provisions in the cannabis tax law as enacted by Proposition 64. SB 94 provides that:

Distributors must collect the cannabis excise tax from retailers and the cultivation tax from cultivators or manufacturers.
Distributors must report and pay the cannabis excise tax and the cultivation tax to the CDTFA.
Sign up for the CDTFA Cannabis Outreach email listserv to receive the latest news on cannabis tax compliance and related issues like CDTFA-issued special notices and news releases.

The CDTFA may adopt emergency regulations to implement and enforce the cannabis tax law. The emergency regulation process has begun. Visit http://www.boe.ca.gov/meetings/pdf/2017BTCcalendar.pdf for specific dates and register online to receive announcement of proposed regulatory change.

Helping your business succeed is important to the CDTFA. To help you better understand the tax obligations specific to your cannabis business, we have created this guide detailing the tax issues and important information relevant to your industry