Each Tax Tier will include 3 different tax rates:
- Sales Tax – Sales tax applied to non-cannabis products
- MJ Sales Tax – sales tax applied to products marked as marijuana product
- Local MJ Tax – local city or county cannabis taxes applied to products marked as marijuana product
In certain cases, some types of medical patients won't pay sales tax for cannabis products but will pay sales tax on other items. Here you can set the proper percentages for each type of customer. Any local cannabis taxes and the excise tax if they are not included in the product price, should be recorded under the Local MJ Tax. If the excise tax is already included in the sale price of the product, you don't need to set it as a separate tax percentage. You will also have an option to apply Local MJ Tax before the sales taxes, so the sales taxes will be applied on top of the selling price and Local MJ Tax.
For any questions concerning the breakdown of your State, County, or City tax rates please contact your local tax experts. For dispensaries located in the State of California, you can also refer to the California Department of Tax and Fee Administration via this link: https://www.cdtfa.ca.gov/