SACRAMENTO (CBSLA) — Legal recreational marijuana sales netted the state of California $60.9 million in tax revenue in the first three months of 2018, according to the state’s tax agency.
The California Department of Tax and Fee Administration says more than half of that money, $32 million, came from the state’s new excise tax on marijuana products. It adds a 15% fee on top of every marijuana purchase, in addition to any local and state sales taxes. (The state also imposes excise taxes on alcohol and gasoline, among other products.)
State sales tax revenue from marijuana sales pulled in an additional $27.3 million. Cannabis users are exempt from sales tax if they have a valid Medical Marijuana Identification Card, but they must still pay the 15% excise tax.
A state tax on marijuana cultivation, which applies to anyone growing marijuana in California, brought in $1.6 million.
Legal marijuana sales are eventually expected to net state and local governments $1 billion a year in taxes.
By: CBS Sacramento