Cannabis taxes don’t have to be confusing! Use this guide to break taxes down in an easy way!
This market looks nothing like what it used to a year ago. The newly regulated California cannabis industry has been through ups and downs with taxes taking a central position in the conversation. Information on recent changes for the entirety of the industry can be found in our Definitive Guide to California Compliance
Taxation on cannabis goods means that there are “certain sales and cultivation taxes” (BCC) which have been implemented; and we all know Uncle Sam doesn’t let anything slide. This has caused some turmoil for those within the industry and in particular, for consumers. Reports show that after all of the taxes attached to cannabis—state excise, regular, and local business taxes—the black market is thriving more than ever as the result of tax percentages on a spectrum of 25-40%.
It’s not rare for customers to purchase a product and look at the bottom of the receipt to have their jaw drop at the breakdown of the taxes that have been tacked onto their most recent purchase. We all know what comes next—questions about who, what, when, where, why, and how these tax amounts came to be.
Be prepared by gaining a solid understanding of how taxes work (or don’t) in the CA market.
Let’s keep it simple.