The state of California and local cities place numerous taxes on legal cannabis. When you walk into The Artist Tree Marijuana Dispensary and Delivery with locations in Los Angeles, Beverly Hills (Los Angeles) and West Hollywood, expect to pay the taxes outlined below in addition to the sticker price you see.
Here is a breakdown of current cannabis taxes
Recreational (adult-use) dispensary customers:
- State excise tax for cannabis: 15%
- State sales tax: 10.25% in West Hollywood and 9.5% in Los Angeles
- City cannabis sales tax:
- West Hollywood: 7.5%
- Los Angeles: 10%
- Fresno: 4%
- Oxnard: 6%
Patients with a medical marijuana ID card (MMIC) or doctor’s recommendation save on some of the taxes above. This is a little confusing. Here are the details:
- All patients pay state excise tax (15%).
- Patients with a MMIC do not pay state sales tax (9.5%-10.25%)
- Patients with a doctor’s recommendation (but no MMIC) pay state sales tax (9.5%).
- Depending on the city, medical patients may pay a reduced or no city cannabis sales tax
- In West Hollywood, all medical patients pay NO city sales tax
- In LA, all medical patients pay 5% cannabis tax instead of 10%