The Cannabis Business Tax was approved by San Francisco voters on November 6, 2018 and becomes effective on January 1, 2023. In addition to the existing Gross Receipts Tax, the Cannabis Business Tax imposes a gross receipts tax of 1% to 5% on the gross receipts from Cannabis Business Activities attributable to the City.
The Cannabis Business Tax is filed as part of the Annual Business Tax Return.
The first $1 million of gross receipts attributable to the City from Cannabis Business Activities is exempt from the Cannabis Business Tax.
Additionally, the Cannabis Business Tax does not apply to:
- Receipts from the retail sale of Medicinal Cannabis; and
- Certain nonprofit organizations and businesses exempt from local taxation.
Cannabis Business Tax rates vary depending on the type of Cannabis Business Activity and the gross receipts from such activity attributable to the City.
Cannabis Business Activity
$1M to $1.5M
Other than Retail Sales
Cannabis Business Activities are any business activities directly related to Cannabis or Cannabis Products, including but not limited to the cultivation, possession, manufacture, processing, storing, labeling, distribution, or sale of Cannabis or Cannabis Products for consideration.
No estimated payments for the Cannabis Tax are due in 2022 or 2023. Beginning in 2024, estimated business tax payments are due April 30th, July 31st and October 31st. Learn more about quarterly estimated payments.
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