Sales Tax in 2017

Taxes in general are never fun. Here’s the good, the better and the ugly for 2017/2018.

The GOOD
We’re happy to remind everyone that beginning January 1, 2017 sales tax in California will be reduced 0.25% making the new rate for Carlsbad 7.75% overall.

The statewide sales tax rate in California increased from 7.25% to 7.5% on January 1, 2013, due to the approval of Proposition 30. The rate increase was temporary, set to expire after four years. Accordingly, the statewide sales tax rate will drop back to 7.25% and we are still required to collect the 0.5% local tax, effective January 1, 2017.

The BETTER
Members who wish to take advantage of the provision in Prop 64, which is effective now, may be exempted from paying sales tax upon presentation of a State Issued MMJ ID Card

Here’s how to do it: Patients who take the extra step of registering with the state for an official state ID card will be exempt from the state sales tax (presently 7.75% for our jurisdiction). Please visit the California MMIC page to learn how to obtain a state ID card. Once you have your state ID card in hand, simply notify our team and we’ll update your member record. From that point until your state ID card expires, we will not charge sales tax on your transactions.

The UGLY
Please understand that come 2018, the law as currently drafted imposes a 15% excise tax on medicinal or recreational use cannabis throughout the state, this will be in addition to the required sales tax. We expect that several groups will organize to appeal this part of the law as quickly as possible as true medical users should not be taxed at the same rate.

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