HOW MUCH WILL I PAY IN TAXES WHEN I BUY CANNABIS AT THE FARMACY BERKELEY?
When we talk about taxes on cannabis sales, there are three different types:
Cannabis State Excise Tax – The cannabis state excise tax is imposed upon purchase of all cannabis and cannabis products at a rate of 15% of the Taxable Excise Total *see below for formula. Retailers are responsible for collecting the cannabis excise tax from purchasers at the time of the retail sale and pay the cannabis excise tax to the California Department of Tax and Fee Administration (CDTFA).
City Tax – 2.5% for Medical Marijuana Identification Card (MMIC) holders and 5% for all other Adult Use/Recreational Purchases.
Sales Tax – Nearly all products in California are subject to a general sales tax, and cannabis is no exception. While the excise tax is the same no matter where you buy, the sales tax varies depending on your city or county. MMIC holders are exempt from sales tax on medical products. Per the CDTFA, sales tax is calculated after delivery fees (if applicable), local city tax and 15% cannabis state excise tax has been added to your purchase.
Farmacy Berkeley’s Tax Formula:
- Purchase Total + 5% City Tax (or 2.5% for MMIC) + Delivery Fees (if applicable) = Taxable Excise Total
- Taxable Excise Total + 15% Cannabis State Excise Tax= Subtotal
- Subtotal + 10.25% Sales Tax = FINAL COST