Cannabis Tax Reporting

Was this article helpful?
1 out of 1 found this helpful

Before the July 1, 2016 tax changes, Monthly Tax Report supplied your marijuana sales tax total and excise taxes.

Now, we’ve replaced the excise tax and provide cannabis taxes collected and owed.

Why the difference? Rounding.


This month, you make three sales for an item that costs $0.10.

Cannabis tax is .037 per item. But for each sale, you collect (0.04) because you can’t cut up pennies.

3 items * (0.04) tax = $0.12 tax collected

At month end, you owe 37% of total sales, not the sum of all the rounded-up taxes collected.

3 items * 0.37 = 0.111 => rounds to $0.11 taxes owed

Have more questions? Submit a request


Please sign in to leave a comment.