Sacramento – The California Department of Tax and Fee Administration has reported increased tax revenue numbers for cannabis sales for the 2nd quarter of 2019 over the same period last year.

As of August 16, the state’s cannabis excise tax generated $74.2 million in revenue reported on returns due by July 31, and the cultivation tax generated $22.6 million.

Sales tax from cannabis businesses totaled $47.4 million in reported revenue for the same period.

This compares to 2018’s second-quarter excise tax figure — $43,490,668.00 million in revenue. The cultivation tax generated $4,482,119.00 million, and the sales tax generated $26,267,470.00 million in revenue in Q2 2018.

Retail sales of medicinal cannabis and medicinal cannabis products are exempt from sales and use taxes when the purchaser provides a valid Medical Marijuana Identification card and valid government-issued identification card. Sales taxes apply to sales of cannabis and other tangible personal property.

Total tax revenue reported by the industry is $144.2 million for 2nd quarter returns due by July 31, 2019. This does not include tax revenue collected by each jurisdiction.

Previously reported revenue for 1st quarter 2019 returns was revised to $120.8 million, which included $63.1 million in excise tax, $17.1 million in cultivation tax, and $40.6 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 January 1, 2018, two new taxes went into effect: a cultivation tax on all harvested marijuana that enters the commercial market and a 15 percent excise tax upon purchasers of marijuana and marijuana products.

In addition, retail sales are subject to state and local sales tax.

To learn more, see the Tax Guide for Cannabis Businesses on the CDTFA website.