Confused about taxes for a California Cannabis Business? The California Department of Tax and Fee Administration (CDTFA) (formerly BOE) has a good resource for you – Tax Guide for Cannabis Businesses. Tax information is available for California marijuana distributors, retailers, cultivators, and manufacturers.
The guide is intended to provide general information regarding issues relating to the Sales and Use Tax Laws, Cannabis Tax Law, and other programs administered by the California Department of Tax and Fee Administration which may affect marijuana businesses.
Any business that sells cannabis or cannabis products, must register with the California Department of Tax and Fee Administration for a seller’s permit. Cannabis cultivators, processors, manufacturers, retailers, microbusinesses, and distributors making sales are required to obtain and maintain a seller’s permit as a prerequisite for applying for a license with the California Department of Food and Agriculture, the California Department of Consumer Affairs, or the California Department of Public Health.
Distributors of cannabis and cannabis products must also register with the California Department of Tax and Fee Administration for a cannabis tax permit to report and pay the two new cannabis taxes to the CDTFA. The cannabis tax permit is in addition to the seller’s permit.
Learn more about California Cannabis Licensing and California Cannabis Law.
Contact us to learn more about California state or local cannabis regulations, cannabis regulatory compliance, and cannabis litigation.
