How much will I pay in taxes when I buy cannabis at Farmacy Santa Barbara?
When we talk about taxes on cannabis sales, we’re talking about three different tax types:
Cannabis State Excise Tax – The cannabis state excise tax is imposed upon purchases 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 CDTFA.
County Tax – 6% for MMIC Card Holders and 6% 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, sales tax varies depending on your city or county. 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 Santa Barbara’s Tax Formula:
Purchase Total + 6% County Tax (or 6% for MMIC) + Delivery Fees (if applicable) = Taxable Excise Total
Taxable Excise Total + 15% Cannabis State Excise Tax= Subtotal
Subtotal + 8.75% Sales Tax = FINAL COST