County Begins Collecting Cannabis Business Taxes
Author: Auditor-Controller-Treasurer-Tax Collector's Office
Date: 12/13/2018 8:21 AM
The County has started receiving Cannabis Business Taxes (CBT). The 4% tax on gross receipts became effective as of July 1, 2018.
Cannabis businesses operating in the unincorporated areas of San Luis Obispo County have begun to report and remit the 4% cannabis business tax. So far, the County has collected over $40,000 from cannabis businesses.
ACTTC staff is working with cannabis businesses to make reporting as clear and straightforward as possible.
In June, 2018, over 76% of San Luis Obispo County voters approved a tax on cannabis businesses. This tax helps cover the cost of enforcing local regulations for the cannabis industry. While the licensing process for cannabis businesses is still underway, some businesses are operating in the unincorporated areas of the County under the Abeyance Resolution. This resolution, approved by the Board of Supervisors on June 19, 2018, allows a limited number of cannabis businesses to operate while their County licenses are pending.
Last month, the Auditor-Controller-Treasurer-Tax Collector (ACTTC) informed these businesses that all revenue generated after July 1, 2018 is taxable. Shortly thereafter, businesses started to report and remit the 4% cannabis business tax.
Any questions about the cannabis business tax should be directed to [email protected] or (805) 781-5831.
