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Business Taxes Law Guide—Revision 2024

Cannabis Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 14.5. Cannabis Tax
Chapter 2. Cannabis Taxes

Section 34012.5


34012.5. Excess tax. (a) The cultivation tax and cannabis excise tax imposed pursuant to Section 34011 required to be collected by the distributor, or required to be collected by the manufacturer pursuant to paragraph (2) of subdivision (h) of Section 34012, and any amount unreturned to the cultivator or cannabis retailer that is not tax but was collected from the cultivator or cannabis retailer under the representation by the distributor or the manufacturer that it was tax constitute debts owed by the distributor or the manufacturer to this state.

(b) A distributor or manufacturer that has collected any amount of tax in excess of the amount of tax imposed by this part and actually due from a cultivator or cannabis retailer, may refund such amount to the cultivator or cannabis retailer, even though such tax amount has already been paid over to the department and no corresponding credit or refund has yet been secured. The distributor or manufacturer may claim credit for that overpayment against the amount of tax imposed by this part that is due upon any other quarterly return, providing that credit is claimed in a return dated no later than three years from the date of overpayment.

(c)Any tax collected from a cultivator, cannabis retailer, or purchaser that has not been remitted to the department shall be deemed a debt owed to the State of California by the person required to collect and remit the tax.

History—Added by Stats. 2017, Ch. 27 (SB 94), in effect June 27, 2017. Stats. 2017, Ch. 253 (AB 133), in effect September 16, 2017, substituted "department" for "board" throughout. Stats. 2022, Ch. 56 (AB 195), in effect June 30, 2022, added "imposed pursuant to Section 34011" after "cannabis excise tax" in subdivision (a); and substituted "cultivator, cannabis retailer, or purchaser" for "cultivator or cannabis retailer" after "from a" in subdivision (c).