The CDTFA is responsible for determining the cannabis mark-up rate every six months. Effective January 1, 2020, the cannabis cultivation tax rates are:
- $9.65 (increased from $9.25) per dry-weight ounce of cannabis flowers;
- $2.87 (increased from $2.75) per dry-weight ounce of cannabis leaves; and
- $1.35 (increased from $1.29) per ounce of fresh cannabis plant.
(CDTFA Special Notice L-720, November 2019)
These cultivation tax rates reflect an adjustment for inflation and apply to cannabis that a cultivator sells or transfers to a manufacturer or distributor.