Cannabis Plants
Cannabis Plants

Workshops Coming in July for Voter-Approved Cannabis Business Tax

Author: Justin Cooley
Date: 6/21/2018 7:57 AM

Members of the cannabis industry can learn during three upcoming public workshops in July how to report and send cannabis taxes.

The cannabis business tax approved by over 76 percent of County voters on the June 5 Primary Election will go into effect on July 1, 2018. This tax will apply to all cannabis-related businesses, including growers, distributers, delivery services, and others.  

To help the industry seamlessly transition, the County Auditor-Controller-Treasurer-Tax Collector (ACTTC) will host three workshops for currently licensed cannabis-related businesses, those that are in the process of becoming licensed, those that are selling cannabis but haven’t yet started the business licensing process and need guidance to get started, and those considering starting a cannabis-related business. 

The workshops will be held in Room 161/162 (located on the first floor of the County Government Center) at 1055 Monterey Street, San Luis Obispo on the following dates and times:

  • Monday, July 9th from 1 to 3 PM
  • Monday, July 9th from 6 to 8 PM
  • Wednesday, July 11th from 2 to 4 PM

“We met with the public and the cannabis industry before proposing the tax. We would like to continue that collaborative process now that voters have approved the tax.  We’re ready to help these businesses comply with the collection and remittance requirements. It is important to note that the tax is a percentage of actual sales and it is due and payable even if the cannabis business is not yet licensed”, said Jim Erb, County Auditor-Controller-Treasurer-Tax Collector.

The tax is set at 4 percent, until July 1, 2020, and will be based on gross receipts. Delivery services operating out of one of the incorporated cities or from another County will be subject to the cannabis tax for all sales in the unincorporated area of the County. The tax applies to both recreational and medical cannabis sales.

 “The tax will be self-reported monthly, which is the same model used to report and remit transient occupancy tax for the hospitality industry,” Erb said. “We want to teach business how to do it correctly, so they can maintain a current status. Falling behind on reporting will result in penalties and interest and the potential to lose a business license, not to mention it can be very difficult to catch up.”

Remittance of the cannabis tax collected in July will be due between August 1stand August 31st and becomes delinquent after August 31st. For more information on the Cannabis Business Tax, please contact Justin Cooley at [email protected] or visit our website at: