California Department of Tax and Fee Administration Reports
Cannabis Tax Revenues for Fourth Quarter of 2018
Sacramento – The California Department of Tax and Fee Administration (CDTFA) reported revenue numbers today for cannabis sales for the 4th quarter of 2018. Tax revenue reported by the cannabis industry totaled $103.3 million for 4th quarter returns due by January 31, 2019, which includes state cultivation, excise, and sales taxes. It does not include tax revenue collected by each jurisdiction.
As of February 14, 2019, California’s cannabis excise tax generated $50.8 million in revenue reported on 4th quarter returns due by January 31, 2019. The cultivation tax generated $16.4 million and the sales tax generated $36.1 million in reported revenue. Retail sales of medicinal cannabis and medicinal cannabis products are exempt from sales and use taxes if the purchaser provides a valid Medical Marijuana Identification card and valid government-issued identification card.
Previously reported revenue for 3rd quarter returns was revised to $100.8 million, which included $53.3 million in excise tax, $12.6 million in cultivation tax, and $34.9 million in sales tax.
Revisions to quarterly data are the result of amended and late returns, and other tax return adjustments.
In November 2016, California voters approved Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act. Beginning on January 1, 2018, two new cannabis taxes went into effect: a cultivation tax on all harvested cannabis that enters the commercial market and a 15 percent excise tax upon purchasers of cannabis and cannabis products. In addition, retail sales of cannabis and cannabis products are subject to state and local sales tax.
To learn more, visit the Tax Guide for Cannabis Businesses on the CDTFA website.
Shasta County Property Owners Fined $150,000 for
Water Quality Violations at Cannabis Grow Site
SACRAMENTO – The Central Valley Regional Water Quality Control Board issued a $150,000 fine against Kongkeo Khamvongsa and Alexandra Kensavath for their failure to clean up a cannabis grow site on property they own in Shasta County. The Regional Board had previously issued a cleanup and abatement order to them in June 2016.
At a Feb. 8 hearing, the Regional Board determined that Khamvongsa, from Wisconsin, and Kensavath of Fresno failed to restore and monitor their property after Board inspectors found evidence of water quality problems related to the development of the property for cannabis cultivation, including grading of 2.6 acres and construction of an earthen dam without obtaining permits.
These activities resulted in the discharge and potential discharge of waste to several streams on the property that are tributary to Fidler Creek and North Fork Cottonwood Creek. Both creeks provide salmon habitat near the unincorporated community of Ono in western Shasta County.
In addition to the financial penalties, Khamvongsa and Kensavath are legally required to clean up the property. The California Water Code authorizes the Board to issue cleanup and abatement orders to any person causing or threatening to cause impacts to waters of the state, including the owner(s) of the land where those discharges or threatened discharged occurred.
“State and Regional Water Board staff and legal counsel, in conjunction with their colleagues at the Department of Fish and Wildlife, have gone to great lengths to hold Mr. Khamvongsa and Ms. Kensavath accountable for their actions,” said Clint Snyder, Assistant Executive Officer for the Central Valley Water Board.
The investigation and enforcement actions are the result of a multiagency program formed specifically to address an array of adverse environmental impacts caused by cannabis cultivation. The program includes staff from the State Water Board and the California Department of Fish and Wildlife. Please see picture at bottom of press release of the unpermitted earthen dam.
The Central Valley Water Board is a California state agency responsible for the preservation and enhancement of the quality of California’s water resources.
Cannabis Tax Revenues for Fourth Quarter of 2018
Sacramento – The California Department of Tax and Fee Administration (CDTFA) reported revenue numbers today for cannabis sales for the 4th quarter of 2018. Tax revenue reported by the cannabis industry totaled $103.3 million for 4th quarter returns due by January 31, 2019, which includes state cultivation, excise, and sales taxes. It does not include tax revenue collected by each jurisdiction.
As of February 14, 2019, California’s cannabis excise tax generated $50.8 million in revenue reported on 4th quarter returns due by January 31, 2019. The cultivation tax generated $16.4 million and the sales tax generated $36.1 million in reported revenue. Retail sales of medicinal cannabis and medicinal cannabis products are exempt from sales and use taxes if the purchaser provides a valid Medical Marijuana Identification card and valid government-issued identification card.
Previously reported revenue for 3rd quarter returns was revised to $100.8 million, which included $53.3 million in excise tax, $12.6 million in cultivation tax, and $34.9 million in sales tax.
Revisions to quarterly data are the result of amended and late returns, and other tax return adjustments.
In November 2016, California voters approved Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act. Beginning on January 1, 2018, two new cannabis taxes went into effect: a cultivation tax on all harvested cannabis that enters the commercial market and a 15 percent excise tax upon purchasers of cannabis and cannabis products. In addition, retail sales of cannabis and cannabis products are subject to state and local sales tax.
To learn more, visit the Tax Guide for Cannabis Businesses on the CDTFA website.
Shasta County Property Owners Fined $150,000 for
Water Quality Violations at Cannabis Grow Site
SACRAMENTO – The Central Valley Regional Water Quality Control Board issued a $150,000 fine against Kongkeo Khamvongsa and Alexandra Kensavath for their failure to clean up a cannabis grow site on property they own in Shasta County. The Regional Board had previously issued a cleanup and abatement order to them in June 2016.
At a Feb. 8 hearing, the Regional Board determined that Khamvongsa, from Wisconsin, and Kensavath of Fresno failed to restore and monitor their property after Board inspectors found evidence of water quality problems related to the development of the property for cannabis cultivation, including grading of 2.6 acres and construction of an earthen dam without obtaining permits.
These activities resulted in the discharge and potential discharge of waste to several streams on the property that are tributary to Fidler Creek and North Fork Cottonwood Creek. Both creeks provide salmon habitat near the unincorporated community of Ono in western Shasta County.
In addition to the financial penalties, Khamvongsa and Kensavath are legally required to clean up the property. The California Water Code authorizes the Board to issue cleanup and abatement orders to any person causing or threatening to cause impacts to waters of the state, including the owner(s) of the land where those discharges or threatened discharged occurred.
“State and Regional Water Board staff and legal counsel, in conjunction with their colleagues at the Department of Fish and Wildlife, have gone to great lengths to hold Mr. Khamvongsa and Ms. Kensavath accountable for their actions,” said Clint Snyder, Assistant Executive Officer for the Central Valley Water Board.
The investigation and enforcement actions are the result of a multiagency program formed specifically to address an array of adverse environmental impacts caused by cannabis cultivation. The program includes staff from the State Water Board and the California Department of Fish and Wildlife. Please see picture at bottom of press release of the unpermitted earthen dam.
The Central Valley Water Board is a California state agency responsible for the preservation and enhancement of the quality of California’s water resources.
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