The price on your medicine doesn’t have to go up because of the tax. Receive a valid medical marijuana card from the doctors here at Nirvana Clinic to save the 14.5% Sales and Use Tax that was implemented on cannabis sales January 1st.
California could collect up to $1 billion per year in cannabis tax revenue, but “it’s going to be kind of messy in the beginning,” said Fiona Ma, a member of the state Board of Equalization, which collected medical cannabis permit fees and taxes until July 2017.
“This is a huge undertaking,” she said. “Trying to rush it all in a two-year process is a daunting task.”
The state may reconsider its tax rates in the near future, said David McPherson, compliance director at HDL Companies, a cannabis management services consultancy.
“I think the issue really is where stabilization begins,” McPherson said. “It’s like when we first got computers: They were $4,000 and three years later they were $400. We anticipate it’s going to take 18 months to tell us where we really are and how much we’re over-taxed.”