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Cannabis Business Tax

For City permitting information, visit the Cannabis Permitting process website.

On November 8, 2016, San Diego voters passed Measure N, Non-Medical Cannabis Tax, which imposes a gross receipts tax on non-medical cannabis businesses that operate or provide services within the City of San Diego. The Cannabis Business Tax Ordinance PDF icon San Diego Municipal Code (SDMC) Chapter 3, Article 4, Division 1, adopted by City Council by PDF icon Resolution No. 310869, became effective on December 12, 2016.      

The Cannabis Business Tax applies to non-medical cannabis business activities including but not limited to, transporting, manufacturing, cultivating, packaging, or retail sales.  Businesses will be taxed initially at a rate of 5% of monthly gross receipts and will increase to 8% on July 1, 2019 unless City Council, by ordinance, takes action to set a different tax rate, not to exceed 15% of gross receipts.   Each business is required to remit monthly the full amount of taxes owed based on previous month activity.  Along with payment of taxes, businesses must file a PDF icon Cannabis Tax Remittance Form.  Cash remittances in excess of over $3,000 require an appointment.  For questions or to request an appointment, please call (619) 615-1580 or email [email protected]

The payment of the Cannabis Business Tax shall in no way be construed as authorizing the continuance of any illegal business.  Persons may not lawfully engage in cannabis business activities without first obtaining required City and State permits and licenses. 

 

Helpful Information and Forms

PDF icon Cannabis Business Tax Remittance Form 

PDF icon Remittance Form Instructions

PDF icon Cannabis Business Tax Adjustment Form

PDF icon 2018 Payment Schedule 

PDF icon Frequently Asked Questions 

 

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