Marijuana Business Factbook 2019

Marijuana Business Factbook 2019 Chapter 2 | State-By-State: Legal Overview, Market Data and Outlook 42 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. CALIFORNIA Medical continued BUSINESS TAXES & FEES Application Fees Dispensary/Retailer: $1,000 Distributor: $1,000 Testing lab: $1,000 Microbusiness: $1,000 Cultivator: From $135 to $8,655 depending on scale, whether indoor or outdoor and use of lights License Fees Dispensary/Retailer: $2,500 to $57,000 annually depending on annual gross revenue Distributor: $1,500 to $240,000 annually depending on annual gross revenue Testing lab: $3,000 to $112,000 annually depending on annual gross revenue Microbusiness: $5,000 to $300,000 annually depending on annual gross revenue Cultivator: From $135 to $8,655 depending on scale, whether indoor or outdoor and use of lights Working capital/escrow/ bond requirements Dispensaries: Proof of assets or a surety bond in the amount of $200,000 and proof of at least $100,000 in liquid assets Cultivators: $1 million bond or assets worth $1 million and the ability to demonstrate $500,000 in cash liquidity State tax requirements 15% excise tax on gross receipts of any retail sale, plus a $9.25 tax per pound of flower, $2.75 per pound of trim and $1.29 per ounce of fresh cannabis plant for cultivators, in addition to state sales and use taxes (7.25% state base). MMJ patients with ID cards are exempt from state sales tax, but they will still pay the excise tax. State tax collections in 2018 $345 million (MMJ and rec combined)