Adult Novelty Distributors

There is no additional tax or fee due on these sales. The distributor will also need to know information on the category and weight of the cannabis sold or transferred to you to properly complete the cannabis tax return. The cannabis return will automatically compute the excise tax due based on the amount entered. Regardless of whether or not you collected sales tax reimbursement from your customers, you as the retailer are liable for the sales tax on taxable sales, and you must report and pay the tax to the CDTFA on your sales and use tax return. In California, all retail sales of tangible personal property are taxable unless the law provides a specific exemption.