California’s cannabis excise tax generated $159.8 million in revenue reported on the Third Quarter 2020 returns due by Nov. 2, 2020, and the cultivation tax generated $41.0 million.
Sales tax from cannabis businesses totaled $105.9 million in revenue for the same period. Sales tax applies to sales of cannabis, cannabis products, and other tangible personal property. Certain retail sales of medicinal cannabis are exempt from sales and use taxes when the purchaser provides, at the time of purchase, a valid Medical Marijuana Identification Card issued by the California Department of Public Health and a valid government-issued identification card.
Total tax revenue reported by the cannabis industry is $306.7 million for Third Quarter returns due by Nov. 2, 2020. This does not include tax revenue collected by each jurisdiction. Previously reported revenue for Second Quarter 2020 returns was revised to $260.2 million, which included $135.0 million in cannabis excise tax, $30.7 million in cultivation tax, and $94.5 million in sales tax. Revisions to quarterly data are the result of amended and late returns, and other tax return adjustments. Cannabis tax revenue data is available on the CDTFA Open Data Portal.