The CDTFA determined the cannabis excise tax mark-up rate will continue to be 60% for the next six months beginning July 1, 2018. (CDTFA Publication 542, News for Tax Practitioners (August 2018))
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. When the sale to the retailer is an arm’s length transaction, the “average market price” is the wholesale cost of the cannabis or cannabis products sold or transferred to the retailer, plus the mark-up percentage that is predetermined by the CDTFA.
The CDTFA is responsible for determining a mark-up rate on a biannual basis in six-month intervals.
Current cannabis tax rates are at: