Proposed Adoption and Amendments of Regulation 3802, Gross Receipts from Sales of Cannabis and Cannabis Product

The California Department of Tax and Fee Administration (Department) proposes to adopt and amend emergency Regulation 3802, Gross Receipts from Sales of Cannabis and Cannabis Products, through the regular rulemaking process. The regulation clarifies the meaning of gross receipts from the retail sale of cannabis or cannabis products for purposes of the cannabis excise tax imposed by Revenue and Taxation Code section 34011.2. The proposed amendments clarify that gross receipts include any amount a purchaser is required to pay “To reimburse the cannabis retailer for the cost of doing business, including the costs of the sale” and add an example of an amount included in gross receipts because the purchaser is required to pay it for a service that is part of the sale of cannabis.