November 21, the California Department of Tax and Fee Administration (CDTFA) finalized the proposed “Regulation 3802”, titled Gross Receipts from Sales of Cannabis and Cannabis Products, taking into account substantive feedback from CCIA and others across the cannabis community.
Initially, proposed text appeared to significantly expand the scope of taxation on cannabis consumers by extending excise tax liabilities to all sales, including certain non-cannabis goods and accessories, as well as capturing other taxes and fees.
However, due to significant pushback from CCIA, UCBA, and others, the final text does not include this expanded scope under the definition of “gross receipts”, and aligns far better with tax definitions in other consumer industries.
This is truly an example of industry in action – thank you to all CCIA members who joined the chorus pushing back on the proposed language!
Read the proposed wording:
https://www.cdtfa.ca.gov/taxes-and-fees/Reg3802-Emergency-Text.pdf
