California Still Left Holding the Bag

Apr 22, 2024


  • The state of California is owed ~$732M in arrears for sales & use, excise and cultivation taxes including penalties and interest. The vast majority (72%) is due from establishments that are out of business.
  • The California Department of Tax and Fee Administration (CDTFA) has identified and assessed $173M in excises tax on illicit sales consummated at unlicensed establishments. The implied sales value is $1.2B (~25% of 2023 $4.4B cannabis sales).
  • We estimate distributors owe a total of ~$1.2B to the state of California and product manufactures (brands) as of January 31, 2024, up from $1B as of June 30, 2023.

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