Cannabis Business Tax
PAY TAXES ONLINE: Need Certificate number and quarterly amount due. Quarterly signed return will still need to be mailed or emailed.
WHAT IS THE CANNABIS BUSINESS TAX?
On November 6, 2018, the voters in the unincorporated area of the County of Nevada passed Measure G. Measure G defined “Cannabis business" as any business activity relating to cannabis, including but not limited to cultivating, transporting, distributing, manufacturing, compounding, converting, possessing, processing, preparing, storing, packaging, labeling, delivering, testing, dispensing, and selling (retail or wholesale sales) of cannabis, of cannabis products or of any ancillary products and accessories, whether or not carried on for gain or profit. “Cannabis Business Tax” is defined as the tax due pursuant to Ordinance 2456 for engaging in cannabis business in the unincorporated area of the County.
Beginning January 1. 2019, every person who is engaged in commercial cannabis cultivation, excluding nurseries, in the unincorporated area of the County shall pay a cannabis business tax set at a rate of 2.5% of gross receipts fixed until July 2021 or set minimums, per growing cycle (post January 1, 2019) and as set forth below:
1) For cultivation sites less than 2,500 square feet, a minimum tax due of $1,2502) For cultivation sites of 2,500-5,000 square feet, a minimum of $2,500 or 3) For cultivation sites greater than 5,000 square feet, a minimum, of $5,000. The 2.5% gross receipt tax is due to the County on all transactions entered into by such a business whose situs address is located in the unincorporated area, regardless of where the sale transaction occurs. The IRS defines gross receipts as, “the total amounts the organization received from all sources during its accounting period, without subtracting any costs or expenses.”
Businesses subject to the ordinance are required to:
1. Complete and submit a Cannabis Business Tax Registration Form to the Nevada County Treasurer-Tax Collector at 950 Maidu Ave, Suite 290, Nevada City, CA 95959. The registration form is available on the Tax Collector’s website.
2. File a quarterly Cannabis Business Tax Statement and remit any taxes due to the Nevada County Tax Collector at 950 Maidu Ave, Suite 290, Nevada City, CA 95959.
Links to forms are listed in above right column.
The tax is due by the end of the month following the end of the reporting period. For example, for sales revenue generated during the quarter beginning January 1, 2019 and ending of March 31, 2019, you would submit the Tax Statement and associated payment to the Tax Collector by April 30, 2019. In addition, if no sales occur within a quarter, you must submit a Tax Statement stating no sales were made. We must receive a quarterly tax statement each quarter from each licensed cannabis business, regardless if sales occur or not.
Payment may be submitted electronically through the Treasurer-Tax Collector’s website or in person at set scheduled times. To schedule a payment appointment, please call (530) 265-1285 between the hours of 8:00 a.m. and 5:00 p.m., Monday- Friday, excluding holidays. If you have any questions regarding the tax, please contact the Tax Collector's Office, Cannabis Division at (530) 265-1285 or firstname.lastname@example.org