Cannabis plants
Cannabis plants

Cannabis Business Tax Rate to be Reduced to 6% of Gross Receipts on July 1, 2023

Author: Auditor-Controller-Treasurer-Tax Collector
Date: 6/23/2023 9:06 AM

During its Tuesday, June 20, 2023, meeting, the San Luis Obispo County Board of Supervisors voted to reduce the Cannabis Business Tax (CBT) rate to 6%, a reduction that will apply to transactions that occur on or after July 1, 2023..

Back in 2018, San Luis Obispo County voters approved the CBT, a measure applicable to cannabis businesses operating within the county's unincorporated areas. This voter-approved measure stipulates an automatic 2% increase in the cannabis tax rate each July 1st, up to a maximum of 10%, unless the Board of Supervisors votes to hold or reduce the tax rate.

Starting from July 1st, 2023, all cannabis business transactions taking place in the county's unincorporated areas will be taxed at the revised rate of 6%. CBT reporting and remittance for the July 2023 period will be due on or before August 31, 2023. It is important to note that CBT returns for the June 2023 period (due on or before July 31, 2023) will still be assessed at the current 8% CBT rate.

Should you have any questions, please contact the ACTTC Public Service team at [email protected]. You can find more information about the CBT on the Tax Collector's CBT Information page.

Please note: Cannabis businesses operating within the seven incorporated cities in the County should consult with their respective city authorities regarding tax obligations.