California State Board of Equalization
Medical marijuana sales have been initially taxable and before 2005 the BOE did not authorize seller’s permit’s to sellers of property that could be deemed illegal. Policy change in October 2005 required BOE staff to offer seller’s permits disregarding the fact that property being sold might be illegal. In January 2016 the Assembly Bill 266 enacted the Medical Marijuana Regulation and Safety Act that creates broad statewide licensure and policy for the retail medical cannabis movement protecting patients, helping the public, and actively conserving the environment.
The Bureau of Medical Marijuana Regulation is culpable for overseeing the Medical Regulation and Safety Act. Assembly Bill 266 makes it mandatory for the BOE to create a system for reporting the operations of commercial cannabis throughout the distribution string. The BOE collects sales taxes and the levied taxes go to the General Fund benefiting the cities and counties within the state’s jurisdiction. The tax from the sale of medical marijuana is deemed the same as the tax collected from the sale of embodied personal property.