California’s cannabis tax numbers are in for the second quarter of 2018 and the numbers suggest the market is trending toward compliance, despite the market’s rocky start.
Tax revenue from the cannabis industry totaled $74,240,257 from April 1, 2018, through June 30, 2018, which includes state cultivation [$4.5 million], excise [$43 .5 million] and sales taxes [$26.3 million]. It does not include tax revenue collected by each jurisdiction. — Excerpt from a California Department of Tax and Fee Administration news release
In contrast, the state’s first quarter cannabis tax total was $60.9 million ($32 million in excise taxes, $1.6 million in cultivation taxes, and $27.3 million in sales taxes). Medical cannabis is not taxed in California.
In the release, the California Dept. of Tax and Fee Administration also announced “a new satellite location” to assist taxpayers in/around Humboldt County, an external tax advisory group for the cannabis industry, a new pilot project for visiting and educating cannabis retailers about compliance with their state tax obligations, and announced new procedures and security measures for financial transactions.
A study released earlier this month by Eaze Solutions, Inc. found that 18 percent of California cannabis consumers are making purchases on the illicit marketplace. A majority of such consumers said they were driven from the legal market by high taxes and a lack of consistency under the new regulations.
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