Cannabis Taxes are hard to understand, especially with 280E IRS tax code. Connect with Aviva Spectrum for a free consultation at: firstname.lastname@example.org. In the meantime, here is a refresher on some of the important changes to cannabis taxation in 2018.
How to Calculate, Collect and Pay Your Cannabis Taxes!
If you're a Cannabis retailer, you now must be collecting cannabis excise tax from your customers beginning January 1, 2018. This new excise tax applies products purchased prior to January 1, 2018 as well. What is the rate and how is it calculated? The rate is 15% excise tax to the State of California. Retailers will need to calculate their excise tax based on the average market price from the retail sale.
So, then the next question retailers are asking is where does that tax money go to?
Cannabis retailers are required to pay the cannabis excise tax to a licensed cannabis distributor.
If you need examples of how to calculate your excise tax, please connect with us at:
Info@avivaspectrum.com for a FREE CONSULTATION!
Cannabis cultivators owe the cultivation tax on all harvested cannabis that enters the commercial market beginning on January 1, 2018. Cannabis sold or transferred prior to January 1, 2018 is excluded. Cultivators are required to pay the cultivation tax to a distributor or manufacturer. Manufacturers and distributors must maintain documentation to support that the cannabis was transferred or sold from a cultivator prior to January 1, 2018. Examples of how to apply what rates to flower versus trim are located here.
Beginning January 1, 2018, distributors who sell or transfer cannabis or cannabis products to a cannabis retailer are required to collect the cannabis excise tax from the retailer.
Cannabis retailers who acquired cannabis or cannabis products prior to January 1, 2018, upon which they did not pay the cannabis excise tax to a distributor, must collect the 15 percent cannabis excise tax from their customers.
Retailers must pay the excise tax on those sales by the 15th of the following month in which they collected the tax to a licensed cannabis distributor with whom they have a business relationship (that is, a distributor that they purchase or acquire cannabis or cannabis products from beginning on January 1, 2018).
Aviva Spectrum offers a FREE CONSULTATION for all new cannabis clients. Let’s connect today at:
Info@avivaspectrum.com or call us TODAY at (424) 226-2927.. Read More
CEO and founder of Aviva Spectrum, Sonia Luna, discusses cannabis financial hurdles, taxes, 280E issues impacting cannabis federal taxes, and effective rates on FOX TV 40 in Sacramento.
According to FinCen, a government banking watchdog, in its “Marijuana Banking Update” report, during the fourth quarter of 2017, less than 400 banking institutions are actually dealing in the cannabis industry right now of an
approximately 12,000 registered banking institutions in the U.S. Sonia Luna, CEO of
Aviva Spectrum and leading cannabis advisor shares in this TV interview some solutions such as money orders you can get from the US postal
If you’re looking for a free cannabis accounting analysis with Sonia Luna, email us today
In this quick TV interview, CEO of Aviva Spectrum, Sonia Luna, offers insights into why cannabis companies have limited access to banking. She discusses how cash transactions affect taxes, cryptocurrency, and the long-term solution to help cannabis companies. Currently, there are only a few providers that have an alternative to banking, such as eXpo founded by Larry Lipman, and Payqwick., founded by Keith Marks, and Ken Berke.
According to FinCen, a government banking watchdog, in its “Marijuana Banking Update” report, during the fourth quarter of 2017, less than 400 banking institutions are actually dealing in the cannabis industry right now of an approximately 12,000 registered banking institutions in the U.S. Sonia Luna, CEO of Aviva Spectrum and leading cannabis advisor shares in this TV interview some solutions such as money orders you can get from the US postal service or accessing private lending vehicles.
If you’re looking for a free cannabis accounting analysis with Sonia Luna, email us today at: Info@avivaspectrum.com.. Read More
After over a decade in the cannabis industry, it is a breath of fresh air to be working with her
"Sonia and her team at Aviva Spectrum were a critical success factor in developing and implementing key internal controls to enable us to successfully implement Timberline at UCP. The teams pre-implemnentation efforts were invaluable to us."
"I have known Sonia for quite a few years now in connection with her service to the IIA, most specifically working on the CAE Roundtable. Sonia has tirelessly promoted this event and has been very successful in promoting its scope, value and attendance. Sonia seems to know everyone in internal audit and her relationships, drive and positive attitude are key factors in my staying involved. Thank you Soniaa."
Sonia has a real care for the success of Thrive Society
"Working with Sonia and Aviva was productive and was a successful partnership for our organization which ultimalely helped us to reduce internal and external costs"
"Sonia Luna - think entrepreneur with a superior understanding of governance, risk and control. Her secret? Years of working with authoritative standard setting bodies such as COSO."
"Aviva provided us with valuable support and useful recommendation while we documented our internal controls. "