- California’s tax collector issues a reminder on how to collect excise tax for retailers.
- California’s three licensing agencies release an online search tool to find licensed cannabis business across the state.
- Former NFL player partners with a Southern California lab to develop and distribute cannabis products.
- Canadian cannabis company acquires California heavyweight distributor, RVR to expand it’s presence in the state.
On Monday, the California Department of Tax and Fee Administration (CDTFA) issued a reminder for retailers on how to collect the cannabis excise tax from their customers. With the first quarter of the fiscal year closing March 31, quarterly return must be filed by April 30. Click here to view the Department’s prepayment and quarterly reporting due dates.
The Administration is eagerly waiting to see how much the state collects in taxes generated from legal cannabis sales. In January, Governor Brown released his constitutionally-mandated budget proposal, and estimates the state will generate approximately $600 million in new cannabis taxes in FY 2018-19. When the Legislative Analyst Office (LAO) analyzed the fiscal impacts of Proposition 64, they conservatively estimated that state and local governments would collection in the high hundreds of millions of dollars to over a $1 billion in annual tax revenue. The state will have a clearer picture when the Governor’s May Revision is released in mid-April. Stay tuned.
Where are all the licensed cannabis businesses in California?
On Wednesday, California’s Bureau of Cannabis Control (BCC) announced an online tool to find state licensed cannabis businesses. According to the Bureau, California’s three licensing agencies (BCC, Department of Food and Agriculture, and Department of Public Health) have issued a combined 5,300+ licenses to date. One of the major complaints among many in the industry is that the state has been slow to grant licenses for major parts of the supply chain creating a major bottle neck. It now appears that the state is making progress on that front. The Bureau also released a list of licensed event organizer entities. Below are the links to the search tools for the three agencies and the list of event organizers:
Former NFL superstar launches cannabis business in Southern California
Former NFL star and Heisman Trophy winner, Ricky Williams has teamed up with a laboratory in El Cajon, California to develop herbal-based wellness products to be distributed throughout Southern California. Williams spent over a decade of his life as a professional football player, and knows the constant stream of aches, pains, and injuries that come from battering his opponents on Sunday. Williams was also a controversial figure in the NFL for his early embrace of cannabis as alternative pain relieving method to traditional pain killers.
Williams’ business, Real Wellness offers a unique line of products that combines CBD and THC with herbal extracts such as arnica, lavender, and turmeric. The news of Williams’ entry into the cannabis market follows recent news that fellow NFL player and Hall of Famer, Joe Montana has also benefitted from the pain relieving properties in cannabis. In is post-professional football life, Montana has been a vocal advocate in support of the pain reducing properties of cannabis, and has invested in cannabis technology company, Herb, to educate the public and athletes on cannabis.
Studies have shown that professional football players are four times more likely to abuse painkiller medication as average Americans. Recently, the NFL Commission, Roger Goodell made comments that while the league does not support recreational use, the league is open to allowing players to use cannabis for pain management. The league is currently studying the issue. More to be seen.
Canadian cannabis company expands in California
On Tuesday, the Canadian cannabis company, CannaRoyalty announced that they had acquired West Sacramento based distributor, River Distribution (RVR). The move consolidates RVR with Alta Supply, an Oakland based distributor creating what is poised to be the leading distribution company in Northern California, if not the state. According to CannaRoyalty, Alta Supply and River Distribution generated a combined ~$30 million in revenues in fiscal year 2017. The acquisition of both companies by a Canadian firm is part of a larger investment by Canadian-based companies investing in California’s legal market. What can we expect next from the Canadians? We will see.