Thaddeus Roan

California Cannabis Taxes Generate $74 Million in 2nd Quarter

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.

Exclusive offer from our sponsor:

Get daily news insights in your inbox. Subscribe

End


Latest Cannabis News

View all news Get email updates

Featured Business Profiles

Create a profile View all categories

From Our Partners

New to Cannabis? Start Here.

The Ganjapreneur beginner's guide to all things cannabis.


Ganjapreneur
Business Index

Find and connect with cannabis-friendly service providers:

Website & branding by the Ganjapreneur in-house agency:

Blue Dream - Uplifted cannabis industry branding & marketing.

Uplifted cannabis industry branding & marketing.