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Business Taxes Law Guide – Revision 2020
 

Cannabis Tax Regulations

Title 18 of the California Code of Regulations

Article 1. General Provisions and Definitions

Regulation 3702


Regulation 3702. California Cannabis Track-and-Trace.

Reference: 34010, 34011 and 34015, Revenue and Taxation Code; Sections 26067 and 26068, Business and Professions Code.

A distributor or cannabis retailer that is required to record commercial cannabis activity in the California Cannabis Track-and-Trace system pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act (commencing with section 26000 of the Business and Professions Code), shall enter into the California Cannabis Track-and-Trace system specified information as follows:

(1) Wholesale Cost. When cannabis or cannabis products are sold or transferred to a cannabis retailer in an arm’s length transaction, the distributor and cannabis retailer shall enter the cannabis retailer’s wholesale cost of the cannabis or cannabis products.

(2) Retail Selling Price. When cannabis or cannabis products are sold in a retail sale, the cannabis retailer shall enter the retail selling price of the cannabis or cannabis products.

History: New regulation filed December 27, 2018, as an emergency; effective and operative December 27, 2018. A Certificate of Compliance must be transmitted to the Office of Administrative Law by December 27, 2020, or the regulation will be repealed by operation of law on the following day.