Taxnexus Codes

The Taxnexus tax engine works with three inputs:

  • Geographic Location
  • Regulatory Sales Type
  • Taxnexus Code

We get the location and sales type (medicinal or recreational) from the transaction document (invoice, quote, order, PO). These are specified with the businessaddress and salesregulation fields in the document header.

For each item in a transaction document a Taxnexus Code must be specified in the taxnexuscode field in the line item. See this Google Document for a spreadsheet with all the Taxnexus Codes with descriptions.

How Do I Manage Taxnexus Codes?

Taxnexus Codes are best used by integrating them directly into product catalogs using the mnemonic codes. Taxnexus Codes may be up to 80 characters in length. A numeric mapping is provided in case you wish to store an integer representation of the code to optimize storage.

How Are Taxnexus Codes Assigned?

A product is only assigned a Taxnexus Code if it is subject to taxation. Items such as services and food items are exempt from taxes in most states. When an item is passed to Taxnexus without a Taxnexus Code, no tax calculations will be made.

Use the consume Taxnexus Code on products that are subject to standard consumption tax, usually known as State Sales Tax.

Besides general consumption, most catalogs have cannabis products that are either bought or sold by an establishment. The two major classes of Taxnexus Codes used to designate cannabis products in those two parts of the product chain are cannacultivation and cannaconsume.

State-by-State Product Catalogs

Cannabis consumption and cultivation tax regimens vary by state. Most states have a variety of taxes or reporting requirements that require Taxnexus Codes to vary on a state-by-state basis.

If you wish to maintain a unified product catalog across different states then in most cases you must maintain a list of Taxnexus codes that applies to each product on a state-by-state basis.

To simplify the use of Taxnexus codes, you may supply a shortened code, like cannaconsume, in a state like California with only one excise tax on cannabis consumption. Using a simplified cannacultivation code also works in a state like Nevada that has only one cultivation excise tax.

In Oregon, however, the State taxing authority has a reporting requirement that calls for products to be broken down into designated categories. That is why in Oregon we require extended Taxnexus codes like cannaconsume-state-or-edibles.

Likewise, in California the CDTFA has different cultivation tax rates based on the type of product. When a California distributor records a purchase from a cultivator they need to designate the type item on the purchase order with an extended Taxnexus Code like cannacultivation-state-ca-flowers.

Listing of Taxnexus Codes

A more manageable version of this list is maintained here.

NumberTaxnexus CodeDescription
218cannaconsume-federal-can-exciseCanadian Cannabis Stamp Tax
5cannaconsume-state-ca-exciseCalifornia Cannabis Consumption Excise Tax
230cannaconsume-state-nv-exciseNevada Cannabis Consumption Excise Tax
223cannaconsume-state-or-concentratesOregon Marijuana Sales Tax
224cannaconsume-state-or-ediblesOregon Marijuana Sales Tax
225cannaconsume-state-or-flowerOregon Marijuana Sales Tax
226cannaconsume-state-or-immature_plantsOregon Marijuana Sales Tax
227cannaconsume-state-or-leavesOregon Marijuana Sales Tax
229cannaconsume-state-or-otherOregon Marijuana Sales Tax
228cannaconsume-state-or-skin_hair_productsOregon Marijuana Sales Tax
231cannaconsume-state-wa-exciseWashington Cannabis Consumption Excise Tax
13cannacultivation-state-ca-flowersCalifornia Cannabis Cultivation Tax, Flowers Only
14cannacultivation-state-ca-freshCalifornia Cannabis Cultivation Tax, Fresh Weight
15cannacultivation-state-ca-leavesCalifornia Cannabis Cultivation Tax, Leaves Only
12cannacultivation-state-co-exciseCalifornia Cannabis Cultivation Excise Tax
38consume-provinceProvincial Sales Tax (PST)
40consume-stateState Sales Tax