Cannabis Inspection Program
The Cannabis Tax Law imposes a cultivation tax on all harvested cannabis that enters the commercial market upon all cultivators based on the weight and category (flowers, leaves, or fresh cannabis plant) of the harvested cannabis. Additionally, a 15 percent cannabis excise tax is imposed upon purchasers of all cannabis and cannabis products sold at retail in this state, including medicinal cannabis and medicinal cannabis products.
We are responsible for administering the collection and enforcement of cultivation tax and cannabis excise tax. We are authorized to inspect any place at which cannabis or cannabis products are sold to purchasers, cultivated, stored, or at any site where evidence of activities involving evasion of tax may be discovered (Revenue and Taxation Code (R&TC) section 34016). Our Inspections Section team members conduct regular inspections to ensure cannabis businesses are complying with state cannabis tax laws. If our inspectors discover that you possess, store, own, or have made retail sales of cannabis or cannabis products without evidence of tax payments or not contained in secure packaging, our inspectors are authorized to seize the cannabis or cannabis products (R&TC section 34016(c)).
Our inspectors will check to see if:
- You have the required permit(s) and/or license(s) to sell cannabis or cannabis products.
- Your purchase invoices and sales receipts include the required cannabis tax information and cannabis taxes were paid or collected, as applicable.
- Your cannabis or cannabis products for retail sale are in secured packaging.