The third quarter delivered $242 million in tax revenue to the state
There is no doubt that California, even with ups and downs in the market, continues to prove to be the state par excellence for marijuana. This fact continues to be solidified as tax revenues generated through the regulated cannabis market continue to be reported. The third quarter 2022 statement was released by the California Department of Tax and Fee Administration (CDTFA). The figure came in at a whopping $242 million.
As of last Wednesday, the total cannabis tax revenue from the third quarter returns is over $240 million. The figure was split between cannabis business sales tax and California’s cannabis excise tax, collecting $128.4 million and $113.6 million, respectively. It is important to note that this total does not yet include pending returns, nor does it include locally imposed taxes collected by counties and cities.
For the second quarter, CDTFA reported tax revenue of $299.8 million. The figure was divided into $146.7 million in cannabis excise taxes, $125.6 million in sales taxes and $27.5 million in cultivation taxes. Revisions to the quarterly data are the result of amended and late returns, as well as other tax return adjustments.
Tax revenue earned by the state since the beginning of 2018 already exceeds $4.4 billion. This is clear evidence of how beneficial the cannabis market has become for the Golden State since a few years ago. Many of these funds support essential local services such as security, transportation, schools, social services and natural resource management programs.