Cannabis Tax

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Tax Payment Submittal Process

All licensed cannabis businesses must submit a completed “City of Goleta – Cannabis Business Tax Remittance Form” on a quarterly basis as defined by the schedule described below under the section “Tax Payment Schedule”. Completed forms are required on all cannabis business activity, even if there are no taxes to remit. The “City of Goleta – Cannabis Business Tax Remittance Form” and guide can be found below: 

Cannabis Tax Remittance Form

Guide to Using the Cannabis Tax Remittance Form

Frequently Asked Questions can be found on the Cannabis Tax FAQ's page. If you have specific questions regarding the cannabis business tax process, we recommend that you provide us questions in writing so that city staff can respond to your inquiry. This will enable us to give you the best advice and will protect you from tax, penalties and interest in case we give you erroneous information. Requests for written advice can be emailed to financegroup@cityofgoleta.org.

To review the City of Goleta's Cannabis Regulations, click here.

To review the City of Goleta's Cannabis Business Tax Municipal Code, click here. Refer to Title 3 Revenue and Finance, Chapter 3.08 Cannabis Business Tax.

For information on obtaining a Cannabis Business License, click here.

Current Cannabis Business Tax Rates for Goleta

On November 6, 2018, the voters passed Measure Z2018, establishing a tax on cannabis business operations within the City of Goleta.  The passing of this ballot measure subjects cannabis businesses to taxation on gross receipts of cannabis based on classifications. The max rates are effective November 17, 2018, and will be subject to the following tax rates on gross receipts:

Cannabis Business Classification

Activities Taxed

Tax Rate

Adult Use Cannabis Retailing

Gross Receipts

5%

Medicinal-Use Cannabis Retailing

Gross Receipts

0%

Manufacturing

Gross Receipts

2%

Cultivation

Gross Receipts

4%

Distribution

Gross Receipts

1%

Testing

Gross Receipts

0%

Nurseries

Gross Receipts

1%

Maximum Tax Limit

Gross Receipts

10%

Maximum Cap for Multiple Operations

Gross Receipts

10%

 

Tax Payment Schedule

The taxation of these activities will be done on a quarterly basis. Due to the timing of the effective date of taxation, activities related to the initial quarter (November 17, 2018 – December 2018) will be due with the 1st Quarter (January, February, March) of the calendar year, which is due no later than thirty (30) calendar days following the last day of the preceding each calendar quarter. Below is a table outlining the tax return and remittance schedule for reference:

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

Due by April 30th

Due by July 30th

Due by October 30th

Due by January 30th