California Cannabis Tax Law

California's cannabis tax law imposes several taxes on cannabis sales. There is a 15% excise tax on the retail price paid by consumers, along with a sales tax that varies by location. Additionally, cultivators face taxes based on the weight of the cannabis harvested. These taxes are intended to regulate and oversee the legal cannabis market, generate revenue for state programs, and counteract the illegal market. Compliance with these tax laws is crucial for licensed cannabis businesses to operate legally in California.