Cannabis Knowledge & Insights

California Cannabis Excise Tax Updates for 2020

As a cannabis distributor in the State of California, you are responsible for collecting and remitting cannabis excise tax to the CDTFA.

As of January 1, 2020, there have been some important updates that you may or may not have been aware of.

The updates involve:

  • Increasing the Markup from 60% to 80%
  • Ability to use a discounted price as the basis for markup
  • Increase in the frequency of payments from quarterly to monthly

This could have huge implications for your business!

If you’re a distributor, you may be overcharging your retail clients and might already be late on your first monthly payment for 2020.

If you’re a dispensary or delivery, you may be paying too much in excise tax to your distributor.

If you need help with your cannabis excise taxes or any other cannabis accounting needs, then please reach out to us at or call 800-674-9050