California cannabis tax revenue reached USD 269.3 million in Q3, with cumulative total nearing USD 5

  Cannabis tax revenue in California reached a new high in the third quarter of 2023, totaling USD 269.3 million, including cannabis excise tax and sales tax.

According to a recent report cited by Mondaq, the California Department of Tax and Fee Administration (CDTFA) reported cannabis tax revenue for the third quarter of 2023 at a total of USD 269.3 million. Of this amount, cannabis excise tax contributed USD 156.9 million, while business sales tax revenue accounted for USD 112.4 million.

The previously announced revenue for the second quarter of 2023 was revised to USD 285.1 million, including USD 164.8 million from cannabis excise tax and USD 120.3 million in sales tax. These revisions resulted from amended and late tax filings, as well as other tax adjustments.

Since January 2018, California’s cumulative cannabis tax revenue has approached USD 5.5 billion, including nearly USD 2.8 billion in cannabis excise tax and nearly USD 2.2 billion in sales tax.

In addition, this total includes USD 501 million in cultivation tax, which was eliminated on July 1, 2022 following the passage of cannabis tax reform legislation. The reported total cannabis tax revenue does not include unpaid tax bills or tax bills still being processed. It also does not include local taxes collected by city and county governments.