California Department of Tax and Fee Administration Reports Cannabis Tax Revenues for the 2nd Quarter of 2020
Press release from the California Department of Tax and Fee Administration:
The California Department of Tax and Fee Administration (CDTFA) reported revenue numbers [on August 19] for cannabis sales for the 2nd Quarter of 2020. As of August 11, 2020, California’s cannabis excise tax generated $101.8 million in revenue reported on the 2nd Quarter 2020 returns due by July 31, 2020, and the cultivation tax generated $22.9 million.
Sales tax from cannabis businesses totaled $83.7 million in revenue for the same period. Sales tax applies to sales of cannabis, cannabis products, and other tangible personal property. Certain retail sales of medicinal cannabis are exempt from sales and use taxes when the purchaser provides at the time of purchase a valid Medical Marijuana Identification Card issued by the California Department of Public Health and a valid government-issued identification card.
Total tax revenue reported by the cannabis industry is $208.4 million for 2nd Quarter returns due by July 31, 2020. This does not include tax revenue collected by each jurisdiction. Previously reported revenue for 1st Quarter 2020 returns was revised to $205.9 million, which included $107.4 million in cannabis excise tax, $26.9 million in cultivation tax, and $71.6 million in sales tax. Revisions to quarterly data are the result of amended and late returns, and other tax return adjustments.
Since January 2018, total program revenue to date is $1.45 billion, which includes $709.9 million in cannabis excise tax, $173.7 million in cultivation tax, and $563.6 million in sales tax.
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 cannabis 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.
Join the discussion! For rules visit: https://kymkemp.com/commenting-rules
Comments system how-to: https://wpdiscuz.com/community/postid/10599/
And that’s what’s called a transfer of wealth from the farmers to the suits.
And the workers.
Wait until the Feds want their cut
If you tax something that’s sold on the black market, under the threat of not allowing someone to continue their “illegal” activity’s it extortion, by the strictest legal definition.
Pay for bureaucrats. I sure dont see the roads getting better or crime going down.
Ain’t “legalization” just swell, fellas? Let’s go ahead now and “legalize” across the nation! What could possibly go wrong?
Absolutely!
I campaigned against $64 precisely because I felt corruption would prevail. It’s an easy assessment “We’re the government, and we’re here to help.”
I suppose every new generation of voters get to learn that one the hard way.
Well they voted it in anyway, now how do we vote it out?
Petition first for equitable taxation.
I mean, can you find another enterprise that gets taxed this multilevel way?.
Do growers of other products get a “cultivation” tax or do they only just pay fees like organic farmers for certification? Do we have conventional agricultural growers paying no similarly assessed fees ? Do berry growers in Watsonville get restricted growing by number of plants? Or those growing medicinal herbs? Equitable treatment is a principle in law and Americans are fond of pointing that out.
And maybe, if product is seized in unpermitted grows and not composted, perhaps it could be made into hempcrete, instead of becoming a carbon emission source?
And has anyone seen a dime of that go to good use in their communities? Real question?
Not a dime !
Yeah the governor got a new 7 mil house for free, and didn’t even pay taxes on it.
lol, sad, 1.5 billion. Projections in 2016 if I remeber was like 5 billion a year. Which is probably true if and when you allow us to bank, sell to other states/internationaly, eliminate 26 U.S code sec 280E, drop the double taxation and allow us to deduct exspenses. Otherwise, Fuck Legal.
Sad thing is all those funds go into the black hole aka California dysfunctional budget
So which department clan got the biggest slice of the pie?