MEDIA RESOURCE: Medical Marijuana/Legalization of Marijuana

stack of receipts

What is the California State Board of Equalization (BOE) policy regarding sales of medical marijuana?

The sale of medical marijuana has always been considered taxable. However, prior to October 2005, the BOE did not issue seller's permits to sellers of property that could be considered illegal. A policy change was issued in October 2005 and the Board directed BOE staff to issue seller's permits regardless of the fact that the property being sold may be illegal, or because the applicant for the permit did not indicate what products it sold.

How many dispensaries are registered with the BOE?

All sellers of medical marijuana are required to hold a seller's permit. However, the BOE does not have actual numbers for sellers of medical marijuana because dispensaries are not required to identify their business type when registering for a selling permit and can report total taxable sales without categorizing the specific product sold.

Where does the sales tax levied on marijuana sellers go?

The sales tax for medical marijuana revenue goes to the state's General Fund as well as cities, counties, and other local jurisdictions where the sale was made.

Are these tax revenues tied to any specific programs in the state budget?

No. The tax from the sale of medical marijuana is treated the same as the tax received from the sale of all tangible personal property.

Tax Guide

BOE Special Notices

Legislative Analyses

  • Assembly Bill 34 (Bonta): Marijuana & Marijuana Producers – 2014-2015 Session
  • Assembly Bill 821 (Gipson): Medical Marijuana for Terminally Ill Patients – 2014-2015 Session

Other Information