California issues second-quarter cannabis revenue report

The California Department of Tax and Fee Administration (CDTFA) has issued its cannabis revenue report for the second quarter of 2022.

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As of Aug. 16, 2022, total cannabis tax revenue from second-quarter returns amounted to $275.2 million, including the state’s cannabis excise tax, which generated $141.3 million; the cultivation tax generating $25.8 million; and $108.1 million in sales tax revenue from cannabis businesses.

The CDTFA administers the state’s sales and use, fuel, tobacco, alcohol, and cannabis taxes, in addition to a variety of other taxes and fees funding specific state programs.

Additionally, CDTFA-administered programs accounted for over $91 billion last fiscal year, supporting essential local services, including transportation, public safety and health, libraries, schools, social services, and natural resource management programs through tax dollars allotments earmarked directly to local communities.

The CDTFA noted previously reported revenue for the first quarter of 2022 returns was revised to $294.5 million and included $152 million in cannabis excise tax, $36.3 million in cultivation tax, and $106.2 million in sales tax. Revisions to quarterly data are the result of amended and late returns and other tax return adjustments.

Under state guidelines, certain retail sales of medicinal cannabis are exempt from sales and use taxes when the purchaser holds a valid Medical Marijuana Identification Card issued by the California Department of Public Health.