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HomeBusiness and Professions CodeDiv. 7Pt. 1Ch. 2§ 16106 Cannabis Retailer Tax Exclusion

§ 16106 Cannabis Retailer Tax Exclusion

Business and Professions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 16106 Cannabis Retailer Tax Exclusion

Key Takeaways

  • •Counties can't count certain taxes as part of a cannabis shop's total sales when charging their own local taxes.
  • •This means the cannabis excise tax and regular sales taxes are not included in what the county can tax.
  • •The rule starts on January 1, 2025.

Example

A cannabis shop sells products and collects state taxes on those sales.

The county cannot add those state taxes to the shop's total sales when calculating its own local tax. Only the actual sale amount (before state taxes) can be taxed by the county.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 16106 Cannabis Retailer Tax Exclusion

A county shall not include in the definition of gross receipts, for purposes of any local tax or fee imposed by the county on a cannabis retailer licensed under Division 10 (commencing with Section 26000), the amount of any cannabis excise tax imposed under Section 34011.2 of, or any sales and use taxes imposed under Part 1 (commencing with Section 6001) of, Part 1.5 (commencing with Section 7200) of, or Part 1.6 (commencing with Section 7251) of, Division 2 of the Revenue and Taxation Code, or Section 35 of Article XIII of the California Constitution. (Added by Stats. 2024, Ch. 874, Sec. 2. (SB 1059) Effective January 1, 2025.)

Last verified: January 22, 2026

Key Terms

gross receiptscannabis excise taxsales and use taxeslocal tax or feecannabis retailer

Related Statutes

  • § 16005 Cannabis Retailer Tax Exclusion
  • § 18824 Contest Revenue Reporting Requirements
  • § 18825 Box Office Tax Inspection
  • § 18826 Promoter Tax Compliance Audit
  • § 18833 Ticket Sales Oversight

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 16106.
View Official Source