Cannabis markup rate decreases July 1

Starting July 1, 2022, through December 31, 2022, the cannabis markup rate will decrease to 75% (the current rate is 80%). (CDTFA Cannabis Special Notice L-851)

The markup rate is the markup between the wholesale cost and the retail selling price and is used to compute the average market price of cannabis or cannabis products sold or transferred to a cannabis retailer by a distributor in an arm’s length transaction. In these transactions, the average market price, which is subject to California’s 15% cannabis excise tax, is the cannabis retailer’s wholesale cost of the cannabis or cannabis products plus the CDTFA’s calculated markup rate.