California’s cannabis tax revenue for the third quarter of 2023 hit $269.3 million, including $156.9 million from the cannabis excise tax and $112.4 million from cannabis sales tax. The total cannabis tax revenue in California since January 2018 is nearly $5.5 billion. The cannabis industry in California has grown from $2 billion in 2018 to over $5 billion in 2023. The cannabis tax revenue is used to fund state-funded projects like transportation initiatives, environmental causes, drug prevention efforts, schools, libraries, and universities. Additional Points The vendor compensation program, which allows eligible cannabis vendors to retain 20% of the cannabis excise tax due on their retail sales of cannabis or cannabis products, was implemented in April 2023. The collected cannabis tax money has helped to change some of the stigmas surrounding the industry. The Center for Medicinal Cannabis Research at UC San Diego receives $2 million in annual funding from marijuana tax revenues.

According to the California Department of Tax and Fee Administration (CDTFA), the cannabis tax revenue for the third quarter of 2023 amounted to $269.3 million, which includes $156.9 million from the cannabis excise tax and $112.4 million from cannabis sales tax¹. The total cannabis tax revenue in California since January 2018 is reported to be nearly $5.5 billion².

The cannabis industry in California has seen substantial growth, with the industry’s value increasing from $2 billion in 2018 to over $5 billion in 2023¹. The tax revenue is indeed used to fund various state-funded projects, including transportation initiatives, environmental causes, drug prevention efforts, schools, libraries, and universities¹.

Additionally, the vendor compensation program, which allows eligible cannabis vendors to retain 20% of the cannabis excise tax due on their retail sales of cannabis or cannabis products, was implemented in April 2023². This program is part of the state’s efforts to support the cannabis industry and its vendors.

For more detailed information, you can refer to the CDTFA’s official reports on cannabis tax revenues¹.

Learn more:

1. cdtfa.ca.gov2. cdtfa.ca.gov3. cdtfa.ca.gov4. cdtfa.ca.gov