The California State Board of Equalization has the task of serving the public ‘through fair, effective, and efficient tax administration.’ Its goal is to obtain sufficient income to match state expenditure. Closer to home, this includes ensuring that income from marijuana covers the cost of administering the program.
Details of the Mass Communication Rollout
The Board has embarked on a mass communication drive as part of its cannabis implementation policy. In so doing, it is making extensive use of social media. It encourages what it calls ‘CalCannabis Cultivation Licensing Stakeholders’ to visit its pages on Facebook, Twitter, Instagram, You Tube, Linked In, RSS News Feed, and download its Mobile Apps.
The California State Board of Equalization confirmed its commitment to keep CalCannabis Cultivation Licensing Stakeholders up to date with latest information, in an email dated April 26, 2017. This addresses The Adult Use of Marijuana Act of 2016 (Prop 64) itself, and compliance with the several tax laws covering cannabis cultivation, and sales of cannabis and related products in California.
Those registering for Board Updates – including members of the public – will also receive the latest news by email. These messages will address tax compliance and related issues, and general news relating to Proposition 64.
Duty of Sellers of Cannabis / Cannabis Products to Register
The email sent out to CalCannabis Stakeholders further reminded them that they must register by January 1, 2018. Thereafter they should start collecting the 15% excise tax. They must then in addition start collecting, and remitting the cultivation tax.
This cultivation tax currently stands at $9.25 per dry-weight ounce of flowers, and $2.75 per dry-weight ounce for leaves. The Equalization Board will reveal information on the administration system, and associated forms as these become available.
Equalization Board Outreach a Welcome Breath of Fresh Air
This is a great step forward, and further confirmation that the State of California is moving towards implementation of the people’s will in the form of Proposition 64. It should also put paid to rumor mongering by those opposing it, and greatly facilitate the task of news media in keeping their readerships informed.
The Board will also be using its channels to inform, and invite participation in the consultative process before finalizing its cannabis taxation policies. It will be disseminating this information via press releases, videos, and the like. We encourage our readership and valued clients to stay in touch with latest news concerning cannabis in general, and tax laws, regulations, and rules covering it in particular.