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Combine Forces with Taxnexus Cannabis Tax Solution

By Vernon Keenan, CEO of Taxnexus

In the wonderful world of American cannabis commerce, we are all beholden to the new cannabis laws and regulations enacted by the states. The opportunity to make money comes with a heavy and unpredictable tax burden. Cannabis tax compliance requires accurate and ongoing surveillance of the legislative landscape and specialized tax accounting. Only with those tools in operation can cannabis taxpayers remain financially compliant.  We created Taxnexus to provide cannabis businesses with transactional tax compliance services from transaction to treasury filing.

Tax Compliance as a Service in Commerce

Since the 1960’s, American commerce has relied on specialty tax compliance services to remain compliant.  An example of what Taxnexus does can be seen in the telecom industry by looking at your phone bill. The FCC requires the detailed listing of all taxes and fees on your statement. Every telecom uses a tax service provider like Taxnexus, not a CPA, to manage the complexity of calculating and presenting taxes on phone bills to consumers, and filing returns with various jurisdictions.

The cannabis industry currently suffers without such a service, resulting in regulatory noncompliance by businesses and governmental tax collection failure. With new and evolving cannabis tax laws at the state and local levels for each type of license, cannabis businesses are in dire need of a tax compliance solution to streamline their transactional tax compliance. By joining forces with cannabis technology commerce software providers, together we can enable the success of the industry at this crucial time.

Gain an Advantage with Taxnexus API

Our value proposition to you is to partner with Taxnexus to offer your customers accurate tax data through your software. With Taxnexus, making sure your clients are tax compliant can be as easy as making an API call.

  • Tax Regimen Database — With a given address, we will identify all the taxes that apply to that geographic location. Taxnexus surveils all state and local sales & cannabis taxes.
  • Financial Accounting and Reporting — Taxnexus keeps a general ledger for each taxpayer to accurately report all tax liabilities.
  • Tax Return Production and Filing — On an annual, quarterly or monthly basis, Taxnexus automatically generates tax returns and files them on behalf of the cannabis taxpayer. Every taxpayer gets a personalized calendar of filing deadlines.

How To Partner with Taxnexus

We have a range of partnership options, and can craft custom agreements to meet specific needs. Here are examples of partnerships we are currently pursuing:

  • Metrc Integration Only — Through our affiliate referral program, even without a direct API integration, we can solve your customers’ tax problems. In Oregon and Colorado, Taxnexus ingests data directly from Metrc.
  • Taxnexus API Rates Only — Allows you to fill out a tax table or internalize your tax algorithms with Taxnexus Rate data.
  • Invoice Tax Calculations — Taxnexus processes every in-store or delivery sale and handles the tax calculation and reporting algorithms.
  • California Distributor Support — Taxnexus services California distributors via daily ingest of invoices and purchase orders. This is required to complete the California Quarterly Cannabis Distributor tax return.

For revenue sharing, we have established partner categories that match these levels of engagement.

Get started by joining the Taxnexus Developer Program that will support your engineering team in evaluating Taxnexus and building Taxnexus integrations. We have an annual program fee of $200 to be a member in the Taxnexus Developer Program.

Choose Your Integration Method

There are two ways to get Taxnexus integrated into existing applications. The first way is to study Taxneux API (https://docs.taxnexus.net) and use one of our SDKs to write the integration directly into your application. We currently have SDKs ready for PHP, Go and Node, and you can generate your own SDK using the Taxnexus Open API specification, which is available at https://docs.taxnexus.net/taxnexus-swagger.yaml.

If your software platform already has an API that exposes your financial data to authorized partner applications, then we have more options. Taxnexus may then write a “plugin” or “cartridge” application that uses both of our APIs at once. This creates a functional gateway between Taxnexus and your application.

Build an AppStore with Taxnexus

Having one’s own API is common strategy for tech companies that operate in the cloud. These companies further differentiate their offerings by using that API to build an AppStore for their partners to sell add-on software and services.

Take a look at Xero and Shopify. Both of those firms have partner galleries and AppStores where their customers find specialized solutions to business problems. The Salesforce AppExchange is considered to be the first and most successful example of a business AppStore.

Cannabis technology businesses who are thinking about building their own AppStore should consider Taxnexus as their anchor tenant. In fact, as anchor tenants in Xero, Salesforce and Shopify AppStores, tax service providers in other specialty tax industries such as Avalara and TaxJar have increased business for those vendors.

Don’t Conquer Taxes On Your Own — Join Taxnexus Instead!

There are less than 50 tax compliance service providers in the United States servicing millions of businesses. All of the businesses who pay for those services have realized an essential truth — it is better for an entire industry to solve its tax problems by pooling resources through service providers like Taxnexus rather than to go it alone.

By being among the first cannabis technology commerce software businesses to adopt Taxnexus, you will gain a competitive advantage by including the Taxnexus brand and features in your sales and marketing materials.

Make tax compliance a key value proposition in your software by making the call to Taxnexus for a demo and business development conference today.

— Vernon Keenan, vern@taxnexus.net, cell: 415-420-2965, office: 510-679-1900

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Taxnexus Does Cannabis Tax Compliance, M&A and More

By Vernon Keenan, CEO of Taxnexus, Inc.

Dear Financial Service Professional:

I’d like to introduce you to Taxnexus, the Cannabis Tax Compliance Company.

Taxnexus is a technology startup dedicated to leading the cannabis industry in tax determination. We make our online business processes and cannabis database available to taxpayers and financial services providers with Taxnexus Cloud.

Very much like our more traditional competitors, Avalara and TaxJar, who service specialty tax needs for other industries, Taxnexus has taken on the burden of accurately surveying and analyzing the cannabis industry tax landscape on behalf of our customers. By pooling cannabis industry resources through Taxnexus, we enable our customers to perform better compliance and accounting of their transactional taxes than they can do on their own.

Dependent upon jurisdictional standards, Taxnexus has developed multiple processes to access the transactional data in order to provide our customers with accurate and timely tax calculation, storage, and filing of cannabis transactional tax returns, as well as sales-and-use taxes. Whether through the customer’s Point of Sale (POS) system, or through Metrc, Taxnexus can interface to perform these tax compliance services. These services are available to your customers through affiliations and partnerships with Taxnexus.

Cloud Services

Taxnexus Cloud works with live data. We currently cover all of the western states, excluding Colorado, offering the following subscription services:

  • Taxnexus API – A programming interface to Taxnexus Cloud used by OEM partners and taxpayers.
  • Taxnexus Forms – A form-generator for specialized cannabis tax returns and reports, just like TurboTax or Lacert.
  • Taxnexus Situs – Thousands of federal, state, county and local Tax Types that contain the exact regimens associated with transactional, business and service taxes accessible by geographic coordinates.
  • Taxnexus Financial Accounting – A customizable, rule-based, double-entry bookkeeping system that posts journal items to each taxpayer’s individual chart of accounts.

Taxnexus Situs

Taxnexus Situs is a proprietary database of all cannabis tax rules and regulations, in addition to sales and use taxes, for all levels of government and all types of businesses along the product chain. Not only does it consist of tax rates, the Situs includes necessary tax regimens for business compliance, such as required method of filing, filing frequency and taxing authorities.

Financial professionals, such as CPAs, use the Situs address look-up capability to automatically determine taxes applicable for their clients. Taxnexus Situs is a premium source of cannabis tax data that aids financial professionals, technology software companies, and cannabis entrepreneurs and operators.

Financial Accounting

Taxnexus uses an audit-quality financial accounting system to organize taxpayer data. The Taxnexus General Ledger (GL) has the following advanced features:

  • Taxnexus Codes
    • Cannabis merchandise and wholesale trade product coding system
    • Fewer than 20 codes needed
  • Cannabis-specific Chart of Accounts (CoA) template
    • Fully Customizable
    • CoA’s managed on per-license basis
    • Branch Rollups
  • Monthly Accounting Calendar
    • Period close function
    • Account Balance and Archive Functions
  • Rule-Based GL Posting
    • Taxnexus uses the “Accounting Equation” to create a balanced ledger.
    • The Taxnexus Codes and Accounting Rules are used to post revenue, expense and tax journal items to the General Ledger.
    • Rule templates may be modified and are extensible.
  • Trial Balances for Tax Reporting
    • When a monthly period is closed, the trial balances for the accrued taxes represents the tax owed.

This General Ledger technology gives Taxnexus the ability to take data from a variety of sources and ingest it into our standards-based financial accounting system. Taxnexus is currently taking data from our cannabis software partners using API and gateway technology. To ingest data from legacy sources, we write custom adapters to other live systems, such as Xero and Quickbooks Online, as well as regular CSV and SQL files.  

Professional Services

In order to help our customers achieve success, Taxnexus provides professional services in the areas of Financial Accounting, Cannabis Policy Analysis and Information Technology. CPA and other professional services firms can partner with Taxnexus to simplify the full spectrum cannabis transaction accounting

  • Financial Accounting
    • Cannabis Revenue Ledger ETL and Reconciliation
    • Ledger Merge
    • Tax Liability Determination
  • Cannabis Policy Analysis Services
    • Taxnexus Situs Access
    • Project Consulting
  • Information Technology Services
    • Solution Architect
    • Project Management
    • Project Consulting

How to Partner with Taxnexus

We have a range of partnership options, and can craft custom agreements to meet specific needs. For revenue sharing, we have established partner categories for CPAs and professional services providers.

Business Model

Taxnexus is focused on the cannabis taxpayer, of whom there are many in tax trouble or are seeking tax solutions. We aim to fill the gap with product-oriented solutions for those taxpayers as quickly as possible.

We seek to have cannabis entrepreneurs, established operators, and multi-state operators use Taxnexus for compliance services. We engage with those customers to monitor ongoing transactions by charging a monthly subscription fee plus additional per-form fees.

Taxnexus anticipates gaining most of our customers using a B2B2C distribution strategy. We have partnerships with cannabis POS and ERP vendors who use Taxnexus to determine their customers’ transactional sales and cannabis taxes. We refer to partners who embed Taxnexus API into their products and sell our services to their customers as OEM partners.

Taxnexus isn’t just about SaaS subscriptions. The Taxnexus founders are expert IT solution and professional service providers. Besides our software offerings, Taxnexus provides high-level financial accounting, IT and cannabis policy analysis services to help OEM partners and taxpayer customers achieve success with Taxnexus Cloud.

Call To Action

All this research and technology automates the arduous process of calculating complicated and evolving cannabis and sales & use taxes, and can be partnered in as a value add to your customers. Contact us today to inquire further about partnering with us to assist your customers with transactional tax compliance.

Taxnexus, Inc.
2625 Alcatraz Ave. Suite 295
Berkeley, CA 94705

Phone: 510-679-1900
Email: Info@Taxnexus.net
Web: www.Taxnexus.net

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Taxnexus Delivers Tax Relief to Oregon Marijuana Retailers

Sign up with Taxnexus by June 15, 2019
for FREE Onboarding (valued at $500)*!

Retailers’ Marijuana Taxes in Oregon

Nobody likes taxes, and in Oregon cannabis dispensary sales are subject to retail sales tax of 17% and up. If you have ever been surprised at your tax bill, are behind on your taxes, or need someone to help sift through your data, Taxnexus is here to help.

As with all specialty taxes, taxes on marijuana sales can be difficult to follow. Performing accurate tax calculations at point of sale and on-time filings are keys to compliance. Taxnexus transaction-to-treasury tax compliance service gives Oregon marijuana retailers access to a complete tax database, audit-grade sales ledger analysis, and automated filing services for a low monthly fee.

Currently, cannabis retailers licensed by the Oregon Liquor Control Commission (“OLCC”) must charge a tax of 17% on recreational marijuana they sell to consumers. The 17% retail marijuana tax applies to the retail sales price of marijuana leaves, marijuana flowers, immature marijuana plants, cannabinoid edibles, cannabinoid concentrate, cannabinoid extract, cannabinoid skins products and any other cannabinoid products. (2017 ORS 475B.705 (1)-(2)). This tax must be collected at the point of sale.

After collecting these taxes, marijuana retailers, as the taxpayers, must file payment vouchers every month and remit the appropriate amount owed. In addition, they must file a return with the Department of Revenue (“DOR”) on a quarterly basis — that is, on or before the last day of January, April, July and October of each year for the previous calendar quarter — and remit the taxes owed. Even if no taxes are owed, marijuana retailers are still required to file a return with DOR. (2017 ORS 475.B.710 (1)-(4)).

In addition to the state’s marijuana tax obligations, some municipalities have imposed their own tax of up to 3% on marijuana sales, with which retailers must comply. However, marijuana retailers are left to find out if they have to pay local taxes, and if so, who they have to file with and pay.

Retailers’ Difficulties with Marijuana Tax Compliance

Cannabis entrepreneurs are inundated with regulatory compliance obligations that do not exist in other types of businesses. With more urgent matters taking up their time to keep the business alive and successful, they often put tax compliance on their growing to-do list but many fail to check it off on a monthly and quarterly basis as required. Even those that do their best to be compliant still have difficulties with correctly calculating their taxes.  

Most financial professionals, such as CPA’s, do not have the bandwidth, access to an automated software as they do to prepare taxes in other industries, or even the interest to deal with marijuana retail taxes.

Pursuing what makes the most business sense for them, accountancies prefer to stick to income, payroll, and 280E tax preparation. To manually calculate and prepare marijuana transactional returns is not a scalable business for CPA’s. Even if they chose to do it, performing the work based on their hourly rates would cost marijuana businesses so much to make it financially unfeasible. As a result, marijuana retailers have no professionals to turn to for help.  

Until Now!

Taxnexus is the only cannabis tax compliance solution in the industry that provides automated transaction-to-treasury tax compliance services to marijuana retailers in Oregon (and other states). All that is required for Taxnexus to accurately calculate and file your marijuana taxes with DOR is your METRC User API Key.

Taxnexus provides its Oregon customers with daily balances on all tax obligations, free monthly payment vouchers, access to the Taxnexus Taxpayer Portal and a tax calendar to ensure timely compliance.

Every quarter, Taxnexus files accurate and timely marijuana tax returns with DOR on behalf of its customers. Using an automated solution, marijuana retailers avoid assessment of past-due taxes and associated late fees, penalties, and interests.

Taxnexus even helps with accurately calculating and filing back taxes so that marijuana retailers can become tax compliant and remain that way!

What’s the Cost?

We know that for any business owner, the bottom line matters. The goal of Taxnexus is to help marijuana businesses become tax compliant so that the industry thrives and we all succeed. We take pride in our low prices so that businesses can afford to be compliant. We gladly offer our services at a fraction of what financial professionals would charge and the hard price of non-compliance.

Limited-Time Offer to Oregon Retailers

If you operate a marijuana dispensary in Oregon, sign up with Taxnexus by June 15, 2019 to take advantage of our limited-time offer to waive your $500 onboarding fee*. Call us today to discuss how we can help you become tax compliant!  Phone: 510-679-1900 www.Taxnexus.net

*Terms and conditions apply.

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New Taxes for California Cannabis Industry

Welcome to the evolving world of cannabis legislation and taxation in California. With the recent 2018 midterm election, a green wave of new laws and regulations has washed ashore, and Taxnexus, a cannabis tax compliance service provider for cannabis businesses, has analyzed the results, looking for insights to guide cannabis business owners in 2019.

In summary, the trend of local counties and cities imposing new cannabis taxes on dispensaries, distributors and cultivators continues, but with some important lessons being learned.

Read the full article by Jasmine Davaloo, Esq. here: New Taxes for California Cannabis Industry

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Three New States Legalize Cannabis

Three New States Legalize Cannabis

Americans in four states had measures on their midterm ballots to legalize cannabis, whether for recreational or medical use. With enough votes in to call the results, Michigan, Utah and Missouri join the 30 states that have legalized cannabis either for medical, recreational or both usages. Specifically, Michigan joins as the 10th state to legalize recreational cannabis, and Utah and Missouri join the other 31 states that currently allow medical marijuana. However, the voters of the conservative state of North Dakota did not pass the Marijuana Legalization and Automatic Expungement Initiative, which would have legalized recreational cannabis and expunged the records of persons convicted of a drug violation where the drug at issue is now legal.

Michigan

Michigan’s Marijuana Legalization Initiative allows the adult-use purchase and possession, and residential cultivation, of marijuana. It also imposes a 10% excise tax at the state level, much of which would be distributed to local governments.

Utah   

The Utah Medical Cannabis Act legalized medical cannabis for the state’s patients with qualifying illnesses. Some believe that this passage is merely symbolic as the state’s lawmakers have been in the process of creating a different model for providing access to medical marijuana to the state’s patients. At a minimum, the voters’ approval puts pressure on the Utahn lawmakers to act.  

Missouri  

The voters of Missouri passed an amendment to the state constitution, making Missouri the 32nd state to legalize medical marijuana. Of the three separate medical marijuana initiatives that were on the ballot, Missouri Amendment 2 was passed. With the legalization, sales of medical marijuana will be subject to a 4% tax. It is expected that this tax would generate an annual revenue of $24 million. 

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California Midterm Ballots To Bring Green Wave of Cannabis Tax Regulations

As state and local jurisdictions rake in millions of dollars in tax revenue from the state’s legal cannabis industry, new states, counties and cities are piling onto the cannabis tax bandwagon. There are currently hundreds of local cannabis business taxes in place in California. On the November ballots, there are 47 new local cannabis tax measures. In fact, even some local jurisdictions that outlaw cannabis operations want a piece of the green pie and are asking voters to impose cannabis business taxes.

More cannabis tax measures being passed means more regulations and compliance responsibilities for cannabis businesses. This is especially taxing (pun intended) for multi-licensed and multi-location cannabis businesses. With hefty monetary penalties and even revocation of business licenses as consequences of noncompliance, adherence to state and local tax regulations is of paramount concern to cannabis businesses.

To review the list of cannabis tax measures on the November 6th ballot, click here.

Source: California Midterm Ballots To Bring Green Wave of Cannabis Tax Regulations

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New Gallup Poll Finds 66 Percent Of Americans Want Marijuana Legal

Sixty-six percent of US adults believe that “the use of marijuana should be made legal,” according to national survey data compiled by the Gallup. The percentage is the highest ever reported by Gallup, which has been tracking Americans’ views on the subject of marijuana legalization since 1969.

Support was strongest among Millennials (78 percent), Democrats (75 percent), and Independents (71 percent). Support for legalization was prevalent among the majority of Republicans (53 percent) and those 55 or older (59 percent), groups who have historically opposed reform.

Source: New Gallup Poll Finds 66 Percent Of Americans Want Marijuana Legal

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Santa Cruz weighs city cannabis tax overhaul

SANTA CRUZ — Acknowledging that a one-size-fits-all approach to taxing cannabis may have some flaws, the Santa Cruz City Council on Tuesday will consider lowering sales taxes enacted in December.

The city’s 8 percent cannabis tax rate, on top of state excise tax, cultivation taxes and the city’s normal sales tax, means some Santa Cruz businesses can be responsible for as much as a 38 percent tax rate — even before annual state licensing fees are calculated, according to a report to the City Council by Senior Planner Katherine Donovan. Studies and industry experts recommend that total taxes on marijuana be limited to no more than 30-35 percent, according to Donovan.

Source: Santa Cruz weighs city cannabis tax overhaul

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Taxnexus Predicts a Cannabis Green Wave on November 6, 2018

Taxnexus Predicts a Cannabis Green Wave
on November 6, 2018

 

States, counties and cities are piling onto the cannabis tax bandwagon. While pundits on TV talk about a pending Blue Wave on November 6th, Taxnexus sees a Green Wave of 43 new local cannabis tax measures in California and 4 state legalization measures on the ballot for this fall’s election.

Some municipalities, even though they ban the sale and use of cannabis altogether, still want a piece of the Green Pie and are putting cannabis tax measures on their November ballots. 

Cannabis Tax Measures on Local Ballots in California.

In the first year of legalized adult use of cannabis in California,  several taxing authorities have decided to cash in on cannabis taxes just like their neighbors have already done. With over 200 incorporated jurisdictions in California, we expect the number of tax measures to steadily grow over the next two years.  Here is what you need to know about what’s happening in the cities and counties in California that have placed cannabis tax measures on their November ballots:

City County Measure Name Proposal
Adelanto San Bernardino S Adelanto Marijuana Tax To authorize the city to impose a tax on marijuana businesses of up to $5.00 per square foot on nurseries and up to 5% on other businesses.
Atwater Merced A Atwater Marijuana Tax To authorize the city to impose a 15% tax on marijuana businesses.
Benicia Solano E Benicia Marijuana Business Tax To authorize the city to impose a tax of up to $10 per square foot for marijuana nurseries and 6% of gross receipts for other marijuana businesses.
Capitola Santa Cruz I Capitola Marijuana Business Tax To authorize the city to tax marijuana businesses at a rate of up to 7% with no expiration date to fund general city purposes.
Chula Vista San Diego Q Chula Vista Marijuana Business Tax To authorize the city to tax marijuana businesses at the following rates: 5% to 15% of gross receipts or $5 to $25 per square foot for cultivation.
Colfax Placer C City of Colfax Cannabis Business Tax To tax cannabis businesses at annual rates not to exceed $10.00 per canopy square foot for cultivation (adjustable for inflation), 6% of gross receipts for retail cannabis businesses, and 4% for all other cannabis businesses.
Colton San Bernardino U Colton Marijuana Tax To authorize the city to impose a tax on marijuana businesses of up to $25.00 per square foot on nurseries and up to 10% on other businesses.
Emeryville Alameda S Emeryville Marijuana Business Tax To enact a marijuana business tax at a rate of up to 6% of gross receipts to fund general city purposes.
Fresno Fresno A Fresno Marijuana Business Tax To tax marijuana businesses at rates of up to $12 per canopy square foot and up to 10% of gross receipts for medical dispensaries and other marijuana businesses, with revenue dedicated to the city’s general fund an a community benefit fund.
Goleta Santa Barbara Z2018 Goleta Marijuana Business Tax To authorize the city to tax marijuana businesses at the following initial rates with a cap at 10% of sales: 5% for retailers; 4% for cultivators; 2% for manufacturers; and 1% for distributors/nurseries.
Hesperia San Bernardino T Hesperia Marijuana Tax To authorize the city to impose a tax on marijuana businesses of up to $15.00 per square foot on nurseries and up to 6% on other businesses.
La Mesa San Diego V La Mesa Marijuana Business Tax To authorize the city to tax marijuana businesses at rates of up to 6% gross receipts and up to $10 per square foot of cultivation.
Lassen Lassen M Lassen County Commercial Marijuana Business Tax To authorize the county to enact a tax on commercial marijuana at rates of between $0.50 to $3.00 per square foot for cultivation and 2.5% to 8% on gross receipts for other businesses, such as retail, distribution, manufacturing, processing, and testing.
Lompoc Santa Barbara D2018 Lompoc Marijuana Business Tax To authorize the city tax marijuana businesses at the following rates: $0.06 per $1 of non-medical retail sales proceeds; $0.01 per $1 of cultivation proceeds; $15,000 for net income less than $2 million of manufacturing/distribution proceeds; $30,000 for net income $2 Million or more of manufacturing/distribution proceeds; a total aggregate tax of $0.06 per $1.00 of microbusinesses proceeds; and no tax on testing.
Malibu Los Angeles G Malibu Marijuana Business Authorization and Tax To authorize the sale of recreational marijuana in the city and imposing a general tax at the rate of 2.5% of gross receipts on the sale of recreational marijuana.
Marina Monterey V Marina Marijuana Business Tax To authorize marijuana businesses to operate in the city and authorizing the city to tax marijuana businesses at rates of up to 5% of gross receipts, with revenue funding general city purposes.
Maywood Los Angeles CT Maywood Marijuana Business Tax To authorize the city to tax marijuana businesses at a maximum rate of 10% of gross receipts to fund general city purposes.
Moreno Valley Riverside M City of Moreno Valley Commercial Cannabis Activity Tax To enact a tax on cannabis sales and cultivation, not exceeding 8% of gross receipts and $15 per square foot of cultivation.
Morgan Hill Santa Clara I Morgan Hill Marijuana Business Tax To authorize the city to tax marijuana businesses at annual rates up to $15.00 per canopy square foot for cultivation and up to 10% of gross receipts for all other marijuana businesses.
Mountain View Santa Clara Q Mountain View Marijuana Business Tax To enact a tax on marijuana businesses of up to 9% of gross receipts to fund general city purposes.
Oakland Alameda V Oakland Marijuana Business Tax Amendments To amend the marijuana business tax law to: allow marijuana business to deduct the cost of raw materials from their gross receipts and to pay taxes on a quarterly basis; and allow the city council to amend the law in any manner that does not increase the tax rate.
Oroville Butte T Oroville Marijuana Tax To authorize an annual gross receipts tax on cannabis businesses at rate not to exceed 1%, with initial rates of 5% on retailers and manufacturers; 4% on cultivators; 3% on distributors; 2% on nurseries; 0% on testing laboratories; and 7% on microbusiness to generate approximately $300,000 to $600,000 in annual revenue.
Pomona Los Angeles PC Pomona Marijuana Business Tax To authorize the city to tax marijuana businesses at rates of $10.00 per canopy square foot for cultivation and up to 6% of gross receipts for all other marijuana businesses to fund general city purposes.
Riverbank Stanislaus B City of Riverbank Cannabis Business License Tax To authorize the City Council of the City to impose a business license tax at a rate of up to 10% of gross receipts on cannabis businesses and dispensaries, to help fund general municipal services.
San Bernardino San Bernardino W San Bernardino Marijuana Tax To authorize the city to impose a tax on marijuana businesses of up to $10.00 per square foot on nurseries and up to 6% on other businesses.
San Diego San Diego AA City Council Marijuana Business Tax Measure To authorize the city to tax marijuana businesses at the following rates: $14 per square foot; up to 8% on manufacturing and distribution; up to 10% on medicinal retail; up to 12% on adult-use retail; and up to 3.5% on testing.
San Francisco San Francisco D San Francisco Marijuana Business Tax Increase To tax marijuana businesses with gross receipts over $500,000 at a rate between 1% and 5%, exempting retail sales of medical marijuana, and expanding the marijuana business tax to businesses not physically located in San Francisco.
Santa Ana Orange Y Santa Ana Recreational Marijuana Business Tax To authorize the city to tax marijuana businesses at rates of $0.25 to $35.00 for gross square footage and up to 10 percent for cultivating, manufacturing, distributing, selling, or testing.
Santa Clara Santa Clara M Santa Clara Marijuana Business Tax To authorize the city to tax commercial marijuana businesses up to 10% of gross receipts and up to $25 per square foot for cultivation.
Simi Valley Ventura Q Cannabis Business Tax To enact a maximum tax on gross receipts of cannabis businesses in the City after January 1, 2019, as follows: for testing, 2.5%; for retail sales, retail delivery, or microbusiness retail, 6%; for distribution not to consumers, 3%; for manufacturing, processing or nonretail microbusiness, and any other type of business not otherwise specified, 4%; and for cultivation, a tax per square foot of canopy ranging from $2.00 per square foot of canopy to $10.00 per square foot of canopy, depending on the type of lighting (artificial or natural) used.
Solvang Santa Barbara F2018 Solvang Marijuana Business Tax To authorize the city to tax marijuana businesses at an initial rate of 5 percent of gross receipts with a cap of 10 percent and a maximum annual increase of 1 percent.
Sonora Tuolumne N City of Sonora Cannabis Business License Tax To enact a business license tax at a rate of up to 15% of gross receipts on cannabis businesses, to help fund general municipal services; and increasing the City’s appropriations limit for the Fiscal Years 2019-2023 by the amount of tax proceeds received.
Suisun Solano C Suisun Marijuana Business Tax To authorize the city to impose a tax of up to $25 per square foot and 15% gross receipts for marijuana businesses.
Union City Alameda DD Union City Marijuana Business Tax To authorize the city to tax marijuana businesses at rates of $12.00 per square foot for cultivation and 6 percent of gross receipts for other businesses to fund general municipal services.
Vista San Diego Z Vista Retail Medical Marijuana Sales and Tax Initiative (November 2018) To authorize commercial retails sales of medicinal marijuana for up to 11 retailers and enacting a 7% tax on the business’ gross receipts.
Contra Costa R Contra Costa County Marijuana Business Tax To authorize Contra Costa County to tax commercial marijuana businesses in the unincorporated area in the amount of up to $7.00 per canopy square foot for cultivation and up to 4 percent gross receipts for all other cannabis businesses to fund general County expenses.
El Dorado N, P, Q, R, S Commercial Cannabis Tax Measures To impose a general tax on any independently authorized commercial cannabis activity in the unincorporated areas of El Dorado County at rates up to: $30 per square foot or 15% for cultivation; 10% for distribution, manufacturing, and retail; and 5% for testing laboratories, effective until amended or repealed, with estimated annual revenue of $1,900,000 to $52,800,000.  

To authorize outdoor and mixed-light (greenhouse) commercial cannabis cultivation for medicinal use on parcels of at least 10 acres zoned Rural Lands, Planned Agricultural, Limited Agricultural, and Agricultural Grazing that are restricted in canopy size, required to pay a County commercial cannabis tax, and subject to a site-specific review and discretionary permitting process with notification to surrounding property owners and environmental regulation.

To authorize outdoor and mixed-light (greenhouse) commercial cannabis cultivation for recreational adult use on parcels of at least 10 acres zoned Rural Lands, Planned Agricultural, Limited Agricultural, and Agricultural Grazing that are restricted in canopy size, required to pay a County commercial cannabis tax, and subject to a site-specific review and discretionary permitting process with notification to surrounding property owners and environmental regulation.

To authorize the retail sale, delivery, distribution, and indoor cultivation of commercial cannabis for medicinal use on parcels zoned Community Commercial, Regional Commercial, General Commercial, Industrial High, and Industrial Low that are restricted in number and concentration, required to pay a County commercial cannabis tax, and subject to a site-specific review and discretionary permitting process with notification to surrounding property owners and environmental regulation.

To authorize the retail sale, delivery, distribution, and indoor cultivation of commercial cannabis for recreational adult use on parcels zoned Community Commercial, Regional Commercial, General Commercial, Industrial High, and Industrial Low that are restricted in number and concentration, required to pay a County commercial cannabis tax, and subject to a site-specific review and discretionary permitting process with notification to surrounding property owners and environmental regulation.

Lake K Lake County Marijuana Business Tax To authorize the county to enact a marijuana business tax at the rates of $1.00 per square foot for nurseries and cultivators and between 2.5% and 4% for other businesses.
Tuolumne M Tuolumne County Commercial Cannabis Business Tax The County to impose a 0%-15% gross receipts tax on commercial cannabis businesses (but no less than $0-$15 per square foot for cultivation businesses as annually increased by a consumer price index) in the unincorporated area of Tuolumne County, and to authorize the Board of Supervisors to implement and adjust the tax at its discretion, with funds staying local for unrestricted general revenue purposes, including but not limited to public safety, health,environmental protection and addressing industry impacts, unless repealed or amended by voters.

These Four States Are Moving to Legalize Cannabis.

Joining the 30 states that have legalized cannabis either for medical, recreational or both purposes, Michigan, North Dakota, Utah and Missouri are the latest four states that will have cannabis measures on their November 6th ballots. There are currently 9 states that allow recreational cannabis.

Michigan – Will it be the 10th State to Legalize Recreational Cannabis?

Michigan’s Marijuana Legalization Initiative, if passed, would allow the adult-use purchase and possession, and residential cultivation, of marijuana. It would also impose a 10% excise tax at the state level, much of which would be distributed to local governments.

North DakotaWill Voters Prove Cannabis Isn’t Just an Urban Thing in America?

The conservative state of North Dakota will also have a recreational cannabis initiative on its November 6th ballot. The Marijuana Legalization and Automatic Expungement Initiative, if passed, would legalize the use and sale of adult-use cannabis. To take it one step further, it would also expunge the records of persons convicted of a drug violation where the drug at issue is now legal.

Utah –  Will the Mormon State Accept Cannabis?

The Utah Medical Cannabis Act, if passed, would legalize medical cannabis for patients with qualifying illnesses. There seems to be overwhelming support for this initiative, which gives it a promising prospect for this conservative state’s patients in need of the medical benefits of cannabis.

Missouri – The Show Me State Asks Cannabis to Show Me the Money.

Missouri has three separate medical marijuana initiatives on its November ballot. Two of them are amendments to the state’s Constitution. Missouri Amendment 2, if passed, would legalize medical marijuana for patients with qualifying conditions, enact a 4% tax on medical marijuana. It is expected that this would bring in the second-highest annual revenue of $24 million. Missouri Amendment 3 would legalize medical marijuana, but put in place a 15% tax on its sale. Finally, Proposition C, would legalize medical marijuana for patients with qualifying conditions, and impose a 2% tax on each sale.

Look for our next blog after the Election Day for the results!

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City of Fillmore puts commercial cultivation of cannabis on November 2018 ballot

“Fillmore voters will have the chance to decide in November whether their city will become the second in Ventura County to allow commercial-scale marijuana cultivation…If approved by a majority of voters, the measure would allow medical marijuana to be grown indoors, with a city permit. It would prohibit all other types of marijuana businesses — including non-medical cultivation, outdoor cultivation, manufacturing of cannabis products, testing, distribution and retail sales.”

Source: Fillmore puts commercial cultivation of pot on November ballot