Dear Clients and Colleagues:
An important tax shift has been announced by the California Department of Tax and Fee Administration.
Beginning January 1, 2023, Cannabis Retailers will be responsible for the collection and paying of cannabis excise tax to the CDTFA. In the past, Distributors were responsible.
You will receive a notice from the CDTFA if you are automatically registered. If not, you will need to register for a cannabis retailer excise tax account through CDTFA online services, that will be available late December 2022.
There is an example of how the cannabis excise tax will be calculated, on the Tax Guide for Cannabis Businesses web page under the Retailers tab.
For more information, see the Special Notice posted on the California Department of Tax and Fee Administration website.