The 411 Cannabis Tax


As we all continue to navigate our current California reality where weed is legal, we’re constantly faced with first-time challenges and uncharted territories—especially when it comes to the whole taxation of cannabis situation.
 
Now legal in our sunny state, cannabis is taxed. It’s a fact that we’ve been aware of, but as the state works through the growing pains of this newly legalized substance, we’re all faced with a changing landscape.
 
State officials have reported quite the increase in taxpayer dollars in those areas that have enabled the sale of marijuana. In San Diego, for example, reports have estimated a collection of $2.26 million from January 1 to July 13 of this year. That’s quite a number. And it will only continue to rise.
 
But beyond the state collection, what does this all mean for you, the loyal cannabis consumers? You get the legalized weed with an added cannabis charge—and here’s more of what we do know.
The total taxes on the substance range from 22.25 to 35.25 percent, broken down between sales and excise tax—much like many of the other goods you know and love.
 
Sales tax collects 7.5 percent for state and zero to three percent for the local portion. When it comes to excise tax, it’s 15 percent for state and zero to ten percent for local. It makes sense, but it’s not an opt-in or opt-out sort of deal. You’re getting taxed. The state of California also collects taxes from commercial growers, which comes in at a rate or $9.25 per ounce of flower and $2.75 per ounce of leaf. That’s then passed down to the consumer (you) who then pays some sweet taxes.
 
Still not legal on the federal level, the entire business model of cannabis consumption is certainly an interesting topic. But hey, we’re all ready and willing to learn and grow as the state and hopefully the country gets on board.
 
And while many complain and seek their product elsewhere, there’s something to be said about enjoying your favorite bud knowing that it’s partly funding something for your lovely home state, right? Plus, you get to enjoy the one and only LA Kush—and that’s something that cannot be beat.

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