MEDIA RESOURCE: Medical Marijuana/Legalization of Marijuana
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.
BOE Special Notices
- Important Information for Sellers of Medical Marijuana – January 2010
- Information on Sales Tax and Registration for Medical Marijuana Sellers – June 2007
- Important Information for Sellers of Medical Marijuana – February 2007
- Senate Bill 643 (McGuire): Local Marijuana & Marijuana Products Tax – 2015-2016 Session
- Assembly Bill 266 (Cooley): Medical & Marijuana Products District Tax – 2015-2016 Session
- Assembly Bill 34 (Bonta): Marijuana & Marijuana Producers – 2014-2015 Session
- Assembly Bill 821 (Gipson): Medical Marijuana for Terminally Ill Patients – 2014-2015 Session
- Assembly Bill 1894 (Ammiano): Medial Cannabis Regulation & Control Act – 2013-2014 Session
- Senate Bill 626 (Calderon): Cannabis Study – 2011-2012 Session
- Senate Bill 847 (Correa): Medical Marijuana Indicia Program – 2011-2012 Session
- Proposition 19 – The Regulate, Control and Tax Cannabis Act of 2010
- Assembly Bill 390 (Ammiano) Marijuana Fee – 2009-2010 Session
- Senate Bill 1098 (Migden) Medical Marijuana – 2007-2008 Session
- Senate Bill 529 (Migden) Tax amnesty: medical cannabis dispensaries – 2007-2008 Session
- Testimony on Fiscal and Legal Implications of Legalization and Regulation of Marijuana – October 28, 2009
- Business Taxes Committee Meeting Minutes – October 25, 2005
- Formal Issue Paper (05-009) – October 14, 2005