Starting January 1st 2018, Under Proposition 64, the Adult Use of Marijuana Act, a recommendation letter from a California Licensed Medical Doctor (MD) or California Licensed Doctor of Osteopathic (DO) is NOT required for adult persons 21 years of age and older who wish to use cannabis for recreational use. However, people purchasing cannabis without a recommendation letter will pay additional taxes.
To read FAQ regarding Proposition 64, click HERE.
To learn more about the law of Proposition 64, click HERE.
15% Excise Tax
Starting January 1st, 2018, there will be a 15% Excise Tax imposed on purchasers of cannabis and cannabis products (some areas have an Excise Tax as much as 35%). Retailers are required to collect this tax, which will be paid to the California Department of Tax and Fee Administration. Form more information, please click HERE.
Medical Cannabis Tax Exemption
Patients who have a valid Medical Marijuana Identification Card (MMIC) from your county health department office are exempt from sales and use taxes. However, patients are NOT exempt from the 15% excise tax.
A valid MMIC are issued to patients by the state of California Department of Public Health. To receive a MMIC, click HERE.
The state-issued MMIC will have a state of California seal and indicate whether the cardholder is a patient or a caregiver. The card will also contain the patient’s or primary caregiver’s photo, a nine-digit ID number, a DPH website to verify the ID card, an expiration date, and the county that issued the card.
Cards issued by the state of California are valid for the duration of the physician’s recommendation letter or up to one year. Recommendation letters must be renewed once it is expired in order to be exempt from sales and use taxes.
However, simply having a recommendation letter from a physician is NOT enough to qualify for this exemption. You MUST have a county issued MMIC card to be exempt from sales and use tax.
Once again, all purchasers of cannabis and cannabis products will be required to pay the %15 Excise Tax.