Marijuana Tax

If you grow pot in California, the state wants it's due.

When it comes to the sale of medical marijuana, California is seeing green.

For the first time since voters passed Proposition 215 more than a decade ago, state tax assessors are reaching out to the state’s 150 to 200 estimated medical marijuana retailers to get them to pay their state and local sales tax.

In February, the state Board of Equalization sent out a special notice to sellers of medical marijuana, urging them to obtain a seller’s permit like any other retailer.

“If you sell medical marijuana, your sales in California are generally subject to tax, and you are required to hold a seller’s permit,” according to the notice.

It goes on to warn sellers that “if you do not obtain a seller’s permit or fail to report and pay the taxes due, you will be subject to interest and penalty charges.”

Proponents of the move say the outreach effort could help legitimize medical marijuana stores by giving them the same rights and responsibilities as any other retailer. Yet it’s causing a lot of consternation among cannabis club owners and medical marijuana advocates.