The Desert IndependentTM

Serving Blythe and the Desert Regions of the Southwest Since 2001


Cannabis tax revenue increases in 3rd quarter of 2018

November 17, 2018

SACRAMENTO, Calif – The California Department of Tax and Fee Administration (CDTFA) reported increased revenue numbers today for cannabis sales for the 3rd quarter of 2018. Tax revenue reported by the cannabis industry totaled $93.1 million for 3rd quarter returns received through October 31, 2018. This includes state cultivation, excise and sales taxes. It does not include tax revenue collected by each jurisdiction.

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.

In November 2016, California voters approved Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act. Beginning on January 1, 2018, two new cannabis taxes went into effect: a cultivation tax on all harvested cannabis that enters the commercial market and a 15 percent excise tax upon purchasers of cannabis and cannabis products. In addition, retail sales of cannabis and cannabis products are subject to state and local sales tax.

To learn more, visit the Tax Guide for Cannabis Businesses on the CDTFA website.

Please refer all comments to The Desert Independent's Facebook Page.

Contact Us    Advertising    Terms    Submit an Article    Have a News Idea?

Copyright © 2008-2020 All Rights Reserved, The Desert Independent, LLC