CDTFA Reports Cannabis Tax Revenues for First Quarter of 2019
Sacramento – The California Department of Tax and Fee Administration (CDTFA) reported revenue numbers today for cannabis sales for the 1st quarter of 2019. As of May 15, 2019, California’s cannabis excise tax generated $61.4 million in revenue reported on the 1st quarter 2019 returns due by April 30, 2019 and the cultivation tax generated $16.8 million.
Sales tax from cannabis businesses totaled $38.4 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 $116.6 million for 1st quarter returns due by April 30, 2019. This does not include tax revenue collected by each jurisdiction. Previously reported revenue for the 4th quarter 2018 returns was revised to $111.9 million, which included $55.6 million in excise tax, $17.2 million in cultivation tax, and $39.1 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 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 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.
Note: This news release may discuss complex tax laws and concepts. It may not address every situation, and is not considered written advice that may be relied on, pursuant to California Code of Regulations, title 18, sections 1705 and 4902. Changes in tax law or regulations may have occurred since the time this news release was written. If there is a conflict between the text of this news release and the law, decisions will be based upon the law and not this news release. For specific help, please contact the CDTFA at 1-800-400-7115.