California collects $322.34 million in cannabis taxes for 3rd quarter

The third quarter report on reported cannabis tax revenue in California was released this week, As of November 16, 2021, the total returns showed $322.34 million in taxes collected, according to the California Department of Tax and Fee Administration (CDTFA).

This includes California’s cannabis excise tax, which generated $168.97 million; the cultivation tax, which generated $42.41 million; and $110.96 million in sales tax revenue from cannabis businesses.

Third-quarter revenue decreased 6.6 percent from adjusted revenue figures for the second quarter. The total reported cannabis tax revenues does not include locally imposed taxes collected by cities and counties.

Previously reported revenue for the second quarter of 2021 returns was revised to $345.12 million, including $177.38 million in cannabis excise tax, $42.31 million in cultivation tax, and $125.43 million in sales tax. Revisions to quarterly data are the result of amended and late returns and other tax return adjustments.

South Lake Tahoe figures for the past quarter have not yet been released.

Since January 2018, total cannabis tax revenue to date is $3.12 billion, including $1.58 billion in cannabis excise tax, $393.44 million in cultivation tax, and $1.15 billion in sales tax.

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. In addition, retail sales of cannabis and cannabis products are 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.