SACRAMENTO – The California Department of Tax and Fee Administration reported revenue numbers today for cannabis sales for the second quarter of 2019. As of Aug. 16, California’s cannabis excise tax generated $74.2 million in revenue reported on the second quarter 2019 returns due by July 31, and the cultivation tax generated $22.6 million.
Sales tax from cannabis businesses totaled $47.4 million in reported revenue for the same period. Retail sales of medicinal cannabis and medicinal cannabis products are exempt from sales and use taxes when the purchaser provides a valid Medical Marijuana Identification card and valid government-issued identification card. Sales taxes apply to sales of cannabis and other tangible personal property.
Total tax revenue reported by the cannabis industry is $144.2 million for second quarter returns due by July 31. This does not include tax revenue collected by each jurisdiction. Previously reported revenue for first quarter 2019 returns was revised to $120.8 million, which included $63.1 million in excise tax, $17.1 million in cultivation tax, and $40.6 million in sales tax. Revisions to quarterly data 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 Jan. 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: www.cdtfa.ca.gov/industry/cannabis.htm