California Code of Regulations
Title 18 - Public Revenues
Division 2 - California Department of Tax and Fee Administration- Business Taxes (State Board of Equalization - Business Taxes, See Ch. 6 and 9.9)
Chapter 8.7 - Cannabis Tax Regulations
Section 3701 - Collection and Remittance of the Cannabis Excise Tax
Current through Register 2024 Notice Reg. No. 12, March 22, 2024
(a) In General. On and after January 1, 2018, a cannabis retailer shall not make a retail sale of cannabis or a cannabis product, unless the purchaser has paid the cannabis excise tax to the retailer at the time of the sale.
(b) Cannabis Retailer's Remittance to a Distributor -- General. If a distributor sells or transfers cannabis or cannabis product to a cannabis retailer on or after January 1, 2018, then the retailer shall remit the cannabis excise tax due on the cannabis or cannabis product based on the average market price to the distributor that sold or transferred the cannabis or cannabis product to the retailer.
(c) Cannabis Retailer's Remittance to a Distributor -- Exception.
(d) Distributor's Reporting and Remittance -- General. Unless as otherwise provided in subdivision (e), a distributor shall report and remit the cannabis excise tax due in accordance with subdivision (e) of section 3700 of this chapter.
(e) Distributor's Reporting and Remittance -- Exception. A distributor shall report and remit the cannabis excise tax collected from the cannabis retailer pursuant to subdivision (c) with the distributor's first return subsequent to receiving the cannabis excise tax from the cannabis retailer.
1. New section filed 12-28-2017 as a deemed emergency pursuant to Revenue and Taxation Code section 34013(d); operative 12-28-2017 (Register 2017, No. 52). A Certificate of Compliance must be transmitted to OAL by 12-30-2019 pursuant to Revenue and Taxation Code section 34013(d) or the emergency language will be repealed by operation of law on the following day.
Note: Authority cited: Section 34013, Revenue and Taxation Code. Reference: Sections 34011 and 34015, Revenue and Taxation Code.