Beginning January 1st 2018 the State of California will require new taxes be collected from ALL Cannabis businesses making sales.
- A 15 percent excise tax is imposed upon purchasers of cannabis and cannabis products. Retailers are required to collect the excise tax from the purchaser and pay it to the cannabis distributor.
- A tax on the cultivation of cannabis that enters the commercial market is imposed upon cultivators. Cultivators are required to pay the cultivation tax to either a distributor or a manufacturer depending upon the nature of the transaction. The cultivation tax rates are:
- $9.25 per dry-weight ounce of cannabis flowers, and
- $2.75 per dry-weight ounce of cannabis leaves.
- Additional categories and rates may be specified at a later date.
For the past many years operating as a nonprofit mutual benefit corporation, A Soothing Seed has worked to alleviate as much expense for our patients by absorbing and paying all state sales taxes for each and every member of our collective whether they were low income or not. Unfortunately the new “Legal” tax base and structure being imposed on the industry will not allow us to continue this practice without raising the cost of our products significantly and for that we are deeply sorry.
We will maintain the quantity discount at $10 each when you get 10 or more, but we will be required to add the new state taxes … making the total for 10 clones $122.75 with the additional tax base.
So far anyway, there are no additional local taxes on cannabis items.
State Mandated SDG&E High Use Fee means electric bills will be even higher for cannabis businesses that cultivate.