The Manufacturers section covers topics related to the general application of tax to purchases and sales by manufacturers.
The Cultivators section covers topics related to the general application of tax to cultivators and processors, the available exemptions and the exemption certificates required. It also has information on exemptions that retailers may qualify for and the exemption certificates required. The Retailers section covers topics related to the general application of tax to purchases and sales by retailers. The Distributors section covers topics related to the general application of tax to purchases and sales by distributors. The Getting Started section provides key resources related to registration, filing returns, account maintenance, and other information cannabis business may need.
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How to Use This GuideĮach section of this guide contains important information relevant to cannabis businesses. To help you better understand the tax obligations specific to your cannabis business, we have created this guide detailing the tax issues and important information relevant to your industry. Helping your business succeed is important to us. Sign up for the CDTFA Cannabis Outreach email listserv to receive the latest news on cannabis tax compliance and related issues like CDTFA-issued special notices and news releases. Additionally, the cannabis excise tax does not apply to cannabis or a cannabis product designated as a trade sample that is given to another licensee without consideration. Beginning January 1, 2022, AB 141 also exempts from cultivation tax, all harvested cannabis that will be, or has been, designated a trade sample and all harvested cannabis that is used to manufacture a cannabis product that is designated a trade sample. 70) will also allow cannabis licensees to provide trade samples to other licensees for targeted advertising of cannabis and cannabis products under the Department of Cannabis Control's regulations.
Assembly Bill 141ĭepartment of Cannabis Control – Assembly Bill 141 (Stats 2021, ch 70) effective July 12, 2021, consolidates the three state cannabis programs into one new state department, the Department of Cannabis Control within the Business, Consumer Services, and Housing Agency and transfers the corresponding powers, duties, functions, and responsibilities to that department.Ĭannabis Trade Samples – Assembly Bill 141 (AB) (Stats. The mark-up rate must be used by distributors to compute the average market price of cannabis or cannabis products sold or transferred to a cannabis retailer in an arm's length transaction.įor more information on the cultivation tax rates increase and mark-up rate, please see our Special Notice, Cannabis Rates Effective January 1, 2022.įor current cannabis mark-up and tax rates, see our Special Taxes and Fees rate page, under Cannabis Taxes. We are responsible for determining the mark-up rate every six months. Mark-up Rate – We have determined the cannabis mark-up rate will remain at 80 percent through June 30, 2022.