Let’s break down the taxes.
When you purchase a cannabis product, that product is taxed four different ways: excise tax, sales tax, city marijuana tax, and neighborhood rehabilitation tax. Each has its own purposes and all are imposed by the government. If the dispensaries didn’t collect these taxes, they wouldn’t be compliant with the law, and it would jeopardize the legitimacy of their business.
In California, the 15% excise tax imposed on consumers is implemented on certain specific goods, usually being luxury products. Examples, other than cannabis products, include products linked to specific health issues, cigarettes, alcohol, and tanning salons.
The sales tax is the typical 8.25% tax you pay on almost everything, cannabis-related or not. It varies from city to city so if you went to Los Angeles, you’d see a state sales tax of 9.5% and if you went to San Diego, it would be 7.75%.
The 4% city marijuana tax and the 1% neighborhood rehabilitation tax are both controlled by Sacramento. Some cities have higher, and some have lower, but all of these taxes are geared for the same thing. Bettering our city and improving our community.