CANNABIS TAX REVENUES INCREASE FOR THIRD CONSECUTIVE QUARTER

Sales of marijuana became legal in California as of January 1, 2018. The California Department of Tax and Fee Administration reported increased revenue numbers this week for cannabis sales for the third quarter of 2018. Managing editor Tami Roleff says no municipalities in the Morongo Basin permit the commercial cultivation or sale of cannabis…

When sales of marijuana became legal in California January 1, two new state cannabis taxes also went into effect: a cultivation tax on all harvested cannabis that enters the commercial market, and a 15 percent excise tax on the purchase of cannabis and cannabis products. In addition, cannabis and its products are subject to state and local sales taxes. Tax revenue from the cannabis industry has been steadily increasing each quarter this year. For the third quarter, tax revenue totaled $93.1 million, $80.2 million for the second quarter, and $60.9 million for the first quarter. Medicinal cannabis is exempt from sales tax if the buyer holds a medical marijuana ID card.

California’s cannabis excise tax generated $52.4 million in revenue reported on 3rd quarter returns received through October 31, 2018. The cultivation tax generated $12 million, and the sales tax generated $28.7 million in reported revenue. Retail sales of medicinal cannabis and medicinal cannabis products are exempt from sales and use taxes if the purchaser provides a valid Medical Marijuana Identification card and valid government-issued identification card. Previously reported revenue for 2nd quarter returns was revised to $80.2 million, which included $42.3 million in excise tax, $4.7 million in cultivation tax, and $33.2 million in sales tax. Revisions to quarterly data in prior periods are the result of amended and late returns, and other tax return adjustments.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.