FAIRFIELD — State tax revenue from the cannabis industry plummeted in the third quarter of 2022.
The California Department of Tax and Fee Administration said excise tax ($128.4 million) and sales tax ($113.6 million) totaled $242 million. This compared to the revised number of $299.8 million in the second quarter.
“As of January 2018, total cannabis tax revenue to date is $4.4 billion, including $2.2 billion in cannabis excise tax and $1.7 billion in excise tax. of sale. This total also includes $500.3 million in culture tax,” the agency reported.
However, since July — the start of the third quarter — the state no longer collects the cultivation tax, the agency reported. Tax revenue in the third quarter of 2021, for example, was $322.34 million, up $80 million from 2022.
State figures also do not include taxes generated at the local level: cities and counties.
A resident of Suisun City told the city council on Tuesday that taxes generated by pot retailers should be placed in a special fund to help with the city’s beautification efforts. The city has estimated that figure at $2 million once all new cannabis stores open.
Additional cannabis tax revenue data is available at https://cdtfa.ca.gov/dataportal/dataset.htm?url=CannabisTaxRevenues.