Starting January 1, 2018, and ending April 1, 2023, California imposed a 15% excise tax on cannabis sales, based on the average retail market price. Buyers must pay this tax, which is included in the total invoice amount provided by the retailer.

The retailer is responsible for passing the tax to the distributor, who must report and send it to the government. In arm's length deals, distributors must collect this tax within 90 days of transferring the product. The excise tax adds to any existing state and local taxes, with total receipts including this tax when calculating sales tax.

Medicinal cannabis given for free and trade samples aren't subject to this tax, but trade samples sold by licensed sellers are taxed as if sold by regular retailers. This rule ended on April 1, 2023.

This law introduces a 15% excise tax on cannabis products purchased in California, starting from January 1, 2018. The tax is based on the average market price and must be paid by the purchaser at the time of sale. Retailers are responsible for providing a receipt stating that the tax is included in the total price.

Distributors must collect this tax from retailers within 90 days of transferring the cannabis products. In transactions not at market value, the tax must be collected by the retailer at the earliest point: either at transfer or sale. Additionally, the excise tax is separate from regular state and local sales taxes, but it should be included in the gross receipts used for calculating those taxes.

Importantly, sales to qualified medical cannabis patients are exempt from sales and use taxes, provided certain conditions are met. The law also exempts donated medicinal cannabis and trade samples from the excise tax.

This section outlines the payment and credit rules related to cannabis excise tax for retailers. Firstly, any cannabis excise tax that a retailer owes to a distributor for taxes owed before January 1, 2023, must be paid to the distributor by April 1, 2023. This requirement does not impose any duty on the department to enforce these payments.

Additionally, cannabis retailers can claim a tax credit on their return for excise taxes already paid to a distributor before January 1, 2023, if those taxes relate to cannabis or cannabis products sold on or after January 1, 2023, for which they need to remit taxes to the department.

Starting January 1, 2023, California requires a 15% excise tax on retail cannabis sales, which may increase to 19% temporarily in 2025. This tax is adjusted biennially from 2028 to match previous cultivation tax revenues, capped at 19%. Retailers collect and remit this tax and must provide purchasers with receipts showing the tax separately. The excise tax is added on top of sales taxes and must be paid at the time of purchase. Medical cannabis donations and trade samples are generally exempt, but the latter may still incur taxes under certain conditions.

This law section sets a cannabis cultivation tax for harvested cannabis entering the commercial market from January 1, 2018, until June 30, 2022. The tax rates are $9.25 per ounce for flowers and $2.75 per ounce for leaves. However, after July 1, 2022, different rules apply, exempting certain transactions from the tax. The tax can vary depending on the cannabis product sold and must be adjusted annually for the relative price of flowers and leaves. Certain methods, like tax stamps or product bags, ensure the tax has been paid before cannabis is moved from cultivation facilities. Distributors and manufacturers must handle tax collection from cultivators, and there are specific procedures and documentation requirements to support this. Refunds are possible for product that fails quality checks. Cannabis cultivated for personal or medicinal use is not taxed. Inflation adjustments for these tax rates are mandated for specific calendar years. The department responsible for cannabis cultivation rules is not tasked with enforcing the actual collection of this tax.

Starting January 1, 2018, California imposes a cultivation tax on all harvested cannabis that enters the commercial market. Cultivators must pay $9.25 per dry-weight ounce for cannabis flowers and $2.75 for leaves, with possible annual adjustments by the department depending on market conditions.

The department can create additional tax categories and regulate how the tax is paid, potentially using tax stamps or marked bags. Cultivators are responsible for paying the tax unless an invoice from a distributor or manufacturer says otherwise.

Distributors or manufacturers collect the tax, and they must provide documentation of tax collection to cultivators. Adjustments for inflation can affect tax rates yearly from 2020 onwards. Cannabis cultivated for personal use, medical purposes, or as donations are exempt. The Department of Cannabis Control does not enforce the cultivation tax.

This law states that cultivators who donate medicinal cannabis under the track and trace system won’t face a cultivation tax on those donations. If someone claims they’re donating cannabis but instead sells it, they must pay taxes. Distributors and manufacturers are also not required to collect or remit taxes for donated medicinal cannabis. Cultivators must keep records of any donations, and it's clear that no cultivation tax is imposed on medicinal cannabis meant for donation. The law defines 'medicinal cannabis' as cannabis intended for use by medicinal patients under Proposition 215. The law becomes effective once the track and trace system is updated, or by March 1, 2020, whichever is sooner, and it will expire five years after becoming operative.

Starting January 1, 2022, cannabis that is harvested and designated as a trade sample is exempt from the cultivation tax. This exemption includes cannabis used to make cannabis products designated as trade samples. The department will set up procedures to apply this exemption. However, if someone sells this tax-exempt cannabis or its products, they must still pay the cultivation tax as if they were the cultivator. The department can create emergency rules to ensure these regulations are enforced quickly to protect public welfare.

This law states that any excise tax on cannabis sales collected by a retailer, along with any extra amount collected from customers as though it were tax, is considered a debt the retailer owes to the state of California.

This rule started applying from January 1, 2023.

This law section explains that distributors and manufacturers have a responsibility to collect cannabis cultivation and excise taxes. If they collect more than the tax owed from cultivators or retailers by mistake, they can refund the excess. The refunded amount can be deducted from future tax payments but must be claimed within three years. Any tax collected but not sent to the state is considered a debt to California.