Cannabis tax revenues of $221.6 million reported for Q4 in California

The California Department of Tax and Fee Administration (CDTFA) reported cannabis revenue on Wednesday for the fourth quarter of 2022. As of February 16, 2023, total cannabis tax revenue from fourth-quarter returns is $221.6 million. This includes California’s cannabis excise tax, which generated $108 million; and $113.6 million in sales tax revenue from cannabis businesses. The total reported cannabis tax revenues do not include outstanding returns and they also do not include locally imposed taxes collected by cities and counties.

Previously reported revenue for the third quarter of 2022 returns was revised to $251.3 million, including $135.4 million in cannabis excise tax, and $115.9 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 $4.6 billion, including $2.3 billion in cannabis excise tax, and $1.8 billion in sales tax. That also includes $501.3 million in cultivation tax, which was eliminated on July 1, 2022, as a result of cannabis tax reform legislation.

Additional cannabis tax revenue data is available on the CDTFA Open Data Portal.