California
Types of cannabis taxes
There are three types of CA taxes customers may see on their receipt:
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Excise Taxes
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Local Cannabis Taxes
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Sales and Use Taxes
Who is exempt from cannabis taxes?
Customers with California Dept. of Public Health (CDPH) MMID cards are exempt from paying Sales and Use Taxes on their purchases, but must still pay the Excise and Local Cannabis Taxes. For more information about the CDPH MMIC please go here.
How are my cannabis tax dollars used?
With regulated cannabis comes taxes necessary to pay for the implementation and enforcement of these new regulations, as well as a host of other benefits for the state and local jurisdictions, including funding for research on the newly legalized cannabis market, developing a test for impaired driving, community reinvestment and research on the pharmacological impacts of cannabis.
Michigan
Types of cannabis taxes
There are two types of taxes applied to the purchase of cannabis products
- Excise Taxes (10% of sale price. Accessories/swag not included)
- Sales Taxes (6% of sale price. On everything)
Who is exempt from cannabis taxes?
Medical sales are not subject to 10% excise tax. But the 6% sales tax is not affected.
* Eaze is recreational only in Michigan at this time. *
You can find more resources on Michigan adult-use cannabis taxation at the Michigan Department of Treasury here.
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