Are medical marijuana products subject to taxation?

Yes, medical marijuana products are subject to taxation in California. State and local taxes, excise taxes, and sales taxes may apply to medical marijuana products. The California Department of Tax and Fee Administration (CDTFA) generally requires sellers of medical marijuana products to obtain a seller’s permit and to charge and collect the applicable state sales tax. The CDTFA also administers local taxes, such as district taxes, that may apply to medical marijuana products in certain geographical areas. In addition, all medical marijuana products are subject to an excise tax. This tax is imposed on the purchase of cannabis and cannabis products sold by retailers for use or sale in the state. The amount of tax due is based on the average market price of the cannabis or cannabis product, and is only collected from retail buyers. Medical marijuana products may also be subject to local taxes. Local jurisdictions may impose their own taxes on the purchase of medical marijuana products. These taxes vary by county and may be in addition to the state and local sales taxes. Overall, medical marijuana products are subject to taxation in California. While the rate of taxation may vary from product to product, it is important to factor in these taxes when buying medical marijuana products in the state.

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Are medical marijuana products subject to taxation?

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