The California Department of Taxes and Fee Management (CDTFA) last week reported cannabis sales for the fourth quarter of 2020. On February 17, 2021, the California cannabis excise tax posted revenue of $ 123.4 million, which was included in the returns of the 4th quarter of 2020 and the cultivation tax brought in 31.6 million US dollars.
Due to the COVID-19 pandemic, all but the largest taxpayers received a three-month extension to submit their tax returns for the 4th quarter of 2020 to CDTFA. These returns are now due April 30, 2021. The 4th quarter 2020 data revision is expected in mid-May after the 1st quarter 2021 return due date on April 30th. Additional information on the relief offered due to the COVID-19 pandemic in the state of emergency COVID-19 can be found.
Cannabis company sales tax was $ 81.4 million for the same period. Sales tax applies to the sale of cannabis, cannabis products, and other tangible personal property. Certain retail medical cannabis sales are exempt from sales and use taxes if the purchaser presents a valid medical marijuana ID issued by the California Department of Health and a valid government-issued ID at the time of purchase.
The tax revenue reported by the cannabis industry for the fourth quarter of return is $ 236.4 million. This does not include the tax revenue collected by each jurisdiction. Previously reported earnings for Q3 2020 returns have been revised to $ 318.9 million, including $ 165.7 million in cannabis excise tax, $ 42.5 million in cultivation tax, and $ 110.7 million. USD sales tax. Changes to quarterly dates are the result of changed and delayed tax returns, as well as other adjustments to the tax return.
As of January 2018, the program has total revenues of $ 2.07 billion, including $ 1.04 billion in cannabis excise tax, $ 256.6 million in cultivation tax, and $ 771.7 million in sales tax.
In November 2016, California voters approved Proposition 64, the Adult Control, Regulation, and Taxation of Marijuana Act. As of January 1, 2018, two new cannabis taxes came into effect: a cultivation tax on all harvested cannabis that comes onto the commercial market and a 15 percent cannabis excise tax on buyers of cannabis and cannabis products. In addition, retail sales of cannabis and cannabis products are subject to state and local sales taxes. For more information, see the Tax Guide for Cannabis Companies on the CDTFA website.
The California Department of Tax and Fee Administration (CDTFA) manages California’s sales and consumption, fuel, tobacco, alcohol, and cannabis taxes, as well as a variety of other taxes and fees that fund certain government programs. Programs managed by the CDTFA account for over $ 73 billion annually, which in turn supports local essential services such as transportation, public safety and health, libraries, schools, social services and natural resource management programs through the distribution of taxpayers’ money directly to the the local communities go.