Filing a Cannabis Tax Return for Cannabis Distributors
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Filing a Cannabis Tax Return for Cannabis Distributors


[Music] Welcome to Filing a Cannabis Tax
Return for Cannabis Distributors. The California Department of Tax and Fee Administration, or CDTFA, administers two cannabis… taxes on the sale of cannabis and cannabis products:
the Cannabis Excise Tax, and the Cultivation Tax. As a cannabis distributor, you are responsible
for collecting both of these taxes… filing the cannabis tax return, and paying the tax
amounts due to the CDTFA by the due date. Your account will automatically be placed
on a quarterly reporting basis. The due date to file the cannabis tax return
and pay the cannabis taxes is the last day… of the month following the reporting period. For example, the cannabis tax return filing
and payment of the cannabis taxes for the… first quarter reporting period, January 1st
through March 31st, is due April 30th. You must file your cannabis tax returns online. You will access the online return through
the CDTFA website by logging in with your… User ID and Password or your Express Login
Code and the Account Number. You will be directed to the Account Services
Menu and can begin filing the return by selecting… the “File Your Return” link under Account Functions. You will then be directed to the Electronic
Filing – Main Menu page, where you will select… an available period to begin filing the return. After accepting the Declaration of Intent
to File Online, you will be directed to the… main page of the cannabis tax return. You will start the cannabis tax return filing
by entering information for the cannabis excise tax. Cannabis Tax online filing help is available by clicking on the question mark icon next to each input field. You must separately enter the total average market price on sales of medicinal and adult-use cannabis. The system will automatically apply the 15%
excise tax rate to the Total Average Market… Price on Sales or Transfers of Cannabis to a Retailer entered and calculate the amount of excise tax due. The “Add Excess Excise Tax Collected, if
any” box is available for you to report… any excess excise tax collected from retailers. You will also be able to take a credit for
any excess excise tax remitted to the CDTFA… and later returned to a retailer, which will
reduce the total cannabis excise tax due. You must enter a value in all boxes on the return. Enter “0” if there is no amount to report. This will allow you to proceed to the next page. If you are reporting an amount other than
“0”, the amount must be positive and contain… one to two digits after the decimal place. Next, you will continue filing the cannabis
tax return by entering information for the… cultivation tax on the “Cultivation Tax Return” page. To report the cultivation tax, you must separately
enter the total ounces of medicinal and adult-use… harvested cannabis that entered the commercial
market under the Flowers, Leaves, and Fresh… Cannabis Plant category accordingly. You will report the cannabis that is sold
or transferred by a cultivator on and after… January 1, 2020 in the first column and report
the cannabis that was sold or transferred… by a cultivator prior to January 1, 2020
in the second column. The system will automatically apply the applicable
cultivation tax rate for each cannabis category… to the total ounces you enter and calculate
the amount of cultivation tax due. Remember, to qualify for the “fresh cannabis
plant” category, the cannabis plant must… be weighed within two hours of harvesting
and without any artificial drying or other… form of drying or curing. The “Review Filing” page provides you
the opportunity to review the return and make… any revisions before submitting. You will then be directed to the “Preparer
and Payment Information” page, where you… are required to enter the Preparer and Return
Payment Information. You will be able to select a payment option
and review the payment information on the… review payment information page before submitting. If “Check” is chosen as the payment option, you will be able to print a voucher to submit with your payment. Once you have filed your return and receive
your confirmation number, make sure to print… a copy of your return for your records. Thank you for watching.

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