The California Department of Tax and Fee Administration (CDTFA) reported revenue numbers Friday for cannabis sales for the 2nd Quarter of 2021. As of Aug. 17, California’s cannabis excise tax generated $172.3 million in revenue reported on the 2nd Quarter 2021 returns due by Aug. 2, and the cultivation tax generated $40.4 million.
Sales tax revenue from cannabis businesses totaled $120.5 million for the same period. Sales tax applies to sales of cannabis, cannabis products, and other tangible personal property. Certain retail sales of medicinal cannabis are exempt from sales and use taxes when the purchaser provides, at the time of purchase, a valid Medical Marijuana Identification Card issued by the California Department of Public Health and a valid government-issued identification card.
Total tax revenue reported by the cannabis industry is $333.2 million for 2nd Quarter returns. This does not include tax revenue collected by each jurisdiction. Previously reported revenue for 1st Quarter 2021 returns was revised to $304.8 million, which included $157.8 million in cannabis excise tax, $39.2 million in cultivation tax, and $107.8 million in sales tax. Revisions to quarterly data are the result of amended and late returns, and other tax return adjustments. Cannabis tax revenue data is available on the CDTFA Open Data Portal.
Since January 2018, total program revenue to date is $2.8 billion, which includes $1.4 billion in cannabis excise tax, $347.4 million in cultivation tax, and $1.0 billion in sales tax.
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 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.
To learn more, visit the Tax Guide for Cannabis Businesses on the CDTFA website.
[Information via news release from the California Department of Tax and Fee Administration.]