Summary:
- 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.