State tax revenue reported by the cannabis industry totaled $103.3 million for 4th quarter 2018 returns due by Jan. 31, 2019, according to numbers reported Tuesday by the California Department of Tax and Fee Administration.
The total includes state cultivation, excise and sales taxes. It does not include tax revenue collected by each jurisdiction.
As of Feb. 14, California’s cannabis excise tax generated $50.8 million in revenue reported on 4th quarter returns due by Jan. 31, 2019. The cultivation tax generated $16.4 million and the sales tax generated $36.1 million in reported revenue.
Retail sales of medicinal cannabis and medicinal cannabis products are exempt from sales and use taxes if the purchaser provides a valid Medical Marijuana Identification card and valid government-issued identification card.
Previously reported revenue for 3rd quarter returns was revised to $100.8 million, which included $53.3 million in excise tax, $12.6 million in cultivation tax, and $34.9 million in sales tax.
Revisions to quarterly data are the result of amended and late returns and other tax return adjustments.
In November 2016, California voters approved Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act. Beginning on Jan. 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 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, see the Tax Guide for Cannabis Businesses on the CDTFA website.