The responsibility for collecting and paying the cannabis excise tax to the California Department of Tax and Fee Administration (CDTFA) shifted from cannabis distributors to cannabis retailers effective January 1, 2023.
Among other requirements, cannabis retailers now need a Cannabis Retailer Excise Tax permit from the CDTFA, and will be responsible for collecting the 15% tax from their customers, and paying over to the CDTFA, alleviating cannabis distributors from this obligation.
In addition, the new law contains important enforcement provisions, including liability for cannabis taxes by unlicensed individuals or cannabis businesses, as well as personal responsibility of any officer, member, manager, partner, or other person personally liable for any unpaid cannabis taxes, when a corporation, partnership, limited liability partnership, or limited liability company fails to pay cannabis taxes due. See Assembly Bill 195 (Stats. 2022, ch. 56).
The attorneys at the Law Office of Williams & Associates, P.C. represent clients in civil cannabis tax audits and criminal investigations. Contact one of our lawyers to discuss your cannabis tax matters.
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