As the nation’s largest legal cannabis market, the regulators had projected $185M in cannabis tax revenues for the first six months of 2018. However, the cannabis taxes collected during this period have fallen significantly short.
Based on the figures released by the California Department of Tax and Fee Administration, the cannabis tax revenues were $60.9M for the first quarter and $74.2M for the second quarter. At a total of $135.1M, the state has collected far below the expected figures.
TAX COMPLIANCE IS THE KEY TO INCREASING CANNABIS TAX REVENUES
Faced with the repeated tax revenue shortfall, the state regulators continue to identify the black market, bureaucratic red tape, and the restrictive local laws causing slower implementation of licensed businesses as contributing factors for the low cannabis tax revenues. However, if the state wants to bring the cannabis revenues up to what it promised voters, cannabis tax compliance by licensed businesses requires its due attention.
Even if the aforementioned factors were eliminated, cannabis tax revenues would still fail to meet the projections as long as licensed businesses remain non-compliant. Tax compliance is necessary for the success of the cannabis industry. Yet, six months after legalization, cannabis businesses along the product chain continue to struggle to comply with the state’s complicated cannabis tax regulations. The tax regulations are simply too difficult for cannabis businesses to master on their own.
TAXNEXUS MAKES CANNABIS TAX COMPLIANCE EASY
Non-compliant cannabis businesses are exposed to audits, and penalties that can range from monetary fines to loss of license. Thankfully, cannabis businesses are not in this alone. Taxnexus, the first cannabis tax compliance solution, provides a host of services that assists every type of cannabis business in being tax compliant with all applicable tax laws.
The Taxnexus automated cannabis tax compliance solution takes the burden of tax compliance off cannabis businesses and allows them to focus on growing their business.
WHAT ABOUT CITY AND COUNTY CANNABIS TAX REVENUES?
As revealed by the state’s low cannabis tax revenues, similar cannabis tax revenue shortfall is also being experienced by local jurisdictions. Taxnexus offers cannabis tax solutions at all jurisdictional levels.
To learn more about Taxnexus, visit www.taxnexus.net and sign up to receive information about Taxnexus services.