HOW MUCH WILL I PAY IN TAXES WHEN I BUY CANNABIS AT FARMACY BERKELEY?
When we talk about taxes on cannabis sales, we’re talking about three different tax types:
Excise Tax – The cannabis excise tax is imposed upon purchasers of all cannabis and cannabis products at a rate of 15% of the average market price when purchased at retail. Retailers are responsible for collecting the cannabis excise tax from purchasers at the time of the retail sale and for paying the tax to the distributor. The distributor reports and pays the cannabis excise tax to the CDTFA.
City Tax – 2.5% for MMIC Card 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, sales tax varies depending on your city or county. Medical Marijuana Identification Card (MMIC) holders are exempt from sales tax on medical products. Sales tax and city tax are calculated after the 15% excise tax has been added to your purchase.
Farmacy Berkeley’s Tax Formula:
Retail Price + 15% Excise Tax = SUBTOTAL
SUBTOTAL + 5% (or 2.5% for MMIC) City Tax + 10.25% Sales Tax = FINAL COST