Cannabis Distributors: Information on Collecting and Paying the Cannabis Excise Tax

Cannabis Distributors: Information on Collecting and Paying the Cannabis
Excise Tax

As a licensed cannabis distributor, you are required to collect the cannabis excise tax from retailers you supply with cannabis or cannabis products (cannabis). There may be instances when there are multiple distributors involved in the transaction. You are responsible for collecting the excise tax if you are the distributor that does the following:

  • Sells and/or invoices cannabis to the retailer; or
  • Transfers cannabis to the retailer on behalf of a manufacturer or cultivator.

You must provide the retailer an invoice or receipt indicating, among other requirements, the amount of cannabis excise tax collected. You are required to report (based on the average market price) and pay the cannabis excise tax to the California Department of Tax and Fee Administration (CDTFA) in the reporting period in which you sell or transfer the cannabis to the retailer.

The Bureau of Cannabis Control (Bureau) is the state agency that regulates the requirements for all licensed distributors. A Distributor-Transport Only licensee (Type 13) may transport cannabis goods between licensees; however, they shall not transport any cannabis goods, except for immature cannabis plants and seeds, to a licensed retailer or licensed microbusiness authorized to engage in retail sale. If you are a Distributor licensee (Type 11) that provides transportation services for another licensed distributor and transport cannabis to a retailer on behalf of the distributor that sells and/or invoices the cannabis to the retailer, you are not responsible for the collection or payment of the cannabis excise tax. You should maintain documentation, such as a shipping manifest or invoice between the two distributors that indicates that the transaction between the distributors is for transportation services only and the cannabis excise tax was not collected.

About
“If you can't figure it out, figure out a "work-around!" The NestEggg Group was founded with a firm belief that working exclusively with professional firms to help them see past their history into the potential of their futures. Your potential is limited only by your creativity. Jeff's business purpose— “why”—centers on changing results through viewing things in new ways. He expounds: “Changing our results requires changing our actions. Because what we do proves what we believe, only when we change our beliefs can we progress. New insights are what cause us to shift our beliefs.” So what results do you want to attain? Call Jeffrey (1-888-987-NEST) when it’s time for progress. About Robert "Jeffrey" Wolter, President The NestEggg Group, Inc & EgggsAct Tax, Inc. & Managing Member NestEggg Investment Advisors Jeffrey is a common sense and productivity strategist. He facilitates and teaches about growth, positioning, and pricing strategies; leadership; operations; business communications and philanthropy. What he does best—differently from others—is energize people while he shows them how to solve business effectiveness. He clarifies the intricate, huts new light. He encourages hope. He sets you up to make development possible. Jeffrey is recognized for his original ideas and success with practical implementation, even as he challenges the "norm". Jeffery is a skilled facilitator. His deep knowledge of his firm(s) operations and ability to understand the intricacies of All of his clients, gives way to sharp observation skills allow his grasp a firm’s nuances quickly. He then guides firm owners and their teams on their unique paths toward improved profitability, smoother operations, stronger cultures and how and when to give back. Since 1998, he's helped more than 5,024 QuickBooks users and business owners achieve results such as: expanding revenues, attracting and inspiring talent, aligning operations with long-term objectives, discovering and leveraging their differentiation, substantially increasing sales and proposal results, strengthening relationships with their clients, and finding more joy in their work. His 25+ year career background includes roles as entrepreneur, finance director, board of director for several nonprofit, creative business development, insurances agency owner, Wealth Management Firm owner, editor, Tax Specialist, Accounting Director, Mediator and more. Before creating his firm in 2007, Jeffrey was an accountant for several well know local firms and individuals. After building a successful accounting practice, he became intrigued and inspired by the uniqueness of how Insurance, Investment's/Wealth Management, Taxes and Accounting/Bookkeeping all tend to work together, he branched out and created his list of Affiliate Companies in 2012 & 2013 In 2013, joined the Intuit Accountants Council and has assisted in the continued enhancement of the popular QuickBooks (Desktop and Online versions) and did so until late 2015. In 2014 with the legalization of Marijuana, Jeff and his team have committed themselves to knowing as much about the industry and being there to offer Cannabis Compliant, Accounting, Tax & Insurance to business owners that have or need help in keeping in with the Federal government's "280E"
Contact Us

Send us an email and we'll get back to you, asap.

Not readable? Change text.