California Reports $242 Million in Cannabis Tax Revenue From Third Quarter Return
Press release from the California Department of Tax and Fee Administration (CDTFA):
The California Department of Tax and Fee Administration (CDTFA) reported cannabis revenue [last week] for the third quarter of 2022. As of November 16, 2022, total cannabis tax revenue from third-quarter returns is $242 million. This includes California’s cannabis excise tax, which generated $128.4 million and $113.6 million in sales tax revenue from cannabis businesses. The total reported cannabis tax revenues do not include outstanding returns. They also do not include locally imposed taxes collected by cities and counties.
Previously reported revenue for the second quarter of 2022 returns was revised to $299.8 million, including $146.7 million in cannabis excise tax, $27.5 million in cultivation tax, and $125.6 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 cannabis tax revenue to date is $4.4 billion, including $2.2 billion in cannabis excise tax, and $1.7 billion in sales tax. That total also includes $500.3 million in cultivation tax, which was eliminated July 1, 2022 as a result of cannabis tax reform legislation signed by Governor Gavin Newsom earlier this year.
Additional cannabis tax revenue data is available on CDTFA’s Open Data Portal.
Background:
In November 2016, California voters approved Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act. 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. Due to cannabis tax reform legislation signed in 2022, the cultivation tax no longer applies to cannabis or cannabis products starting July 1, 2022. Starting January 1, 2023, distributors (including microbusinesses that distribute cannabis) will no longer be responsible for collecting and paying the cannabis excise tax to CDTFA for cannabis or cannabis products sold or transferred to cannabis retailers. Cannabis retailers will be automatically registered in December for a cannabis retailer excise tax permit based on licensing information provided by the Department of Cannabis Control. Additionally, cannabis retailers will be responsible for reporting and paying the cannabis excise tax to CDTFA for sales transactions that occur on and after January 1, 2023.
Retail sales of cannabis and cannabis products remain subject to state and local sales tax. Sales tax applies to sales of cannabis, cannabis products, and other merchandise such as pipes, rolling papers, and shirts. Certain retail sales of medicinal cannabis are exempt from sales and use taxes when the purchaser holds a valid Medical Marijuana Identification Card issued by the California Department of Public Health. To learn more, visit the Tax Guide for Cannabis Businesses on the CDTFA website.
The California Department of Tax and Fee Administration (CDTFA) administers California’s sales and use, fuel, tobacco, alcohol, cannabis taxes, and various other taxes and fees that fund specific state programs. CDTFA-administered programs accounted for more than $91 billion last fiscal year, supporting essential local services such as transportation, public safety and health, libraries, schools, social services, and natural resource management programs through the distribution of tax dollars going directly to local communities.
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Good for the lying rip off government, bad for the people!!!
So the government is the only one profiting?
Selling some trim last year we got $88/ pound. Well…
The State got $80. We got $8.
This year we’re just going to send all the buyers hundo$, and skip the hassle of growing for the privilege.
Since we only have 600 retail outlets they averaged 3 million each this quarter.
A million a month…
Not bad.
What’s wrong with the picture?
I am puzzled as well why the legals are complaining about sales. 9 billion plus in retail sales annually is not enough?
I’m just wondering why the distros are hosing the farmers so hard…
That’s the issue is the steps legal has to jump through to get to the customer. If you can go from farm to customer lung in one easy step you win the legal game. Otherwise your reliant on the cannabis conniseuer network to determine if your worthy as long as it is price comparable with the other thousands of brands on the shelf, lol.
So 128 million in excercise tax (15% collected by distributor but passed on to customer) means retailers purchased 1.6 billion in product that was purchased by the customer. This should equate to 140 million in retail sales tax where’s the missing 27 million in taxed dope? Who is getting the 20% cut, lol.
So happy that all the distribution companies are paying everybody $160 a pound more, now that the State dropped the Cultivation tax. Oh wait
Never mind.
Dispenceraries are mak’in 3 million a quarter you should get yourself one of those.
The usual suspects get the 20%.
Oy vey stop noticing so much!! 😂
But the Ukraine needs more than that.
$6 per state citizen. WHOOPEE (not)
Yet somehow the illegal growers are still making money. They’re still vacationing in Nicaragua, yoga , surfing. There is still money to be made in certain states. Just gotta be a smart crook .
I’m guessing the only ones still making money are those who have distribution as part of their game.
Not really. Why don’t you share with the class which states are paying decent $$.
All of them. Dealers still getting 125 to 240 a zip for Humboldt weed in LA tax free.
Such a deal. They pay about the same for a pound.
Awwww. You sound bitter. Living on those buried pvc pipes full of cash I bet. It’s running out soon …….
Keep packing water and soil, ya’all. The politicians are counting on that revenue to enrich themselves.
The distros will not pay farmers anything more than the cost of production, its a total joke. Distro acts as a glass ceiling to never let you get paid what your herb is worth. The vest best weed is only getting 400$ a lb. The distro will charge you so much in fees your lucky to make 75$ per lb. The whole industry is dead, the only people making it are diverting, the economy in Humboldt is about to die. PS, Its so bad alot of people are just killing themselves, not that anyone cares about them.
Tax rate needs to go way up.
Oh Vinny!
Newest one in the room!
Good idea, I wonder why they didn’t try THAT yet.
This is why I refused to support Prop. 64…Corrupt establishment politicians are ripping us off.
what are they gonna spend it on ?
The exploding amount of land for sale tells the story of most growers.
Certainly the most for sale signs I’ve ever seen.
It’s like that all over the country but yea humco is getting hit real real hard. No one’s buying and a lot are needing to sell
Especially here
Now that you can’t make an easy mil per year on basically any piece of rural land in hum co land values finally starting to drop. Undeveloped 40 acres should be going for less than 100k
They’re going to end up with a billion dollars at the end of the year and you know what we’re all going to end up with? A giant dick in our mouths.