Nesteggg Accounting

  • Home
  • Services
    • Nesteggg Accounting
      • Payroll Services
      • Cannabis Accounting
    • Egggsact Tax, Inc.
    • Forms
      • Free Accounting Analysis
      • Business Services Agreement
      • New Corporation/LLC Request
      • New Account Setup
  • Contact Us

Cannabis Cultivators, How to Determine Tax on Whole Dry Cannabis Plants Sold to Manufacturers

Cannabis Cultivators, How to Determine Tax on Whole Dry Cannabis Plants Sold to Manufacturers

 

As a cultivator, you are responsible for the cultivation tax on all harvested cannabis entering the commercial market. Your distributor or manufacturer is required to collect the cultivation tax from you based on the category and weight of the cannabis.

The current cannabis cultivation tax categories are:

  • Cannabis flowers at $9.25 per dry-weight ounce that are harvested, dried, cured, and includes trimmed and untrimmed flower.
  • Cannabis leaves at $2.75 per dry-weight ounce, that are harvested, dried, cured, and includes all parts of the cannabis plant other than cannabis flowers.
  • Fresh cannabis plant at $1.29 per ounce that is weighed within two hours of harvesting and includes flowers, leaves, or a combination of flowers, leaves, stems, and stalks cut above the roots, or otherwise removed from the cannabis plant, without further processing, such as any form of drying, curing, or trimming.

Selling or transferring whole dry cannabis plants to a manufacturer
There is no cultivation tax category for a whole dry cannabis plant. When you sell or transfer the cannabis as a whole dried cannabis plant to a manufacturer, you must use the cannabis flower category for the whole dried plant at a rate of $9.25 per dry-weight ounce. Or, you may do one of the following:

  • Process the plant and separately weigh the dried cannabis flowers and leaves; the flowers at $9.25 per ounce, and the leaves at $2.75.
  • Weigh the cannabis plant within two hours of harvesting in an unprocessed state and sell or transfer the cannabis to a manufacturer as fresh cannabis plant at $1.29 per ounce.

Recent Posts

  • Economy Opening… Stop… Start…
  • Road Map to Opening
  • Tried Calling?
  • Free Credit Reports
  • CA License Extensions for Cannabis Business
  • What Are Libraries Doing Now
  • Cannabis Markup to Remain the 80%
  • Time to Retire?

Archives

  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018

Categories

  • Cannabis Compliant Accounting + Tax
  • NestEggg's Small Business HELP
  • News
  • Uncategorized

Stay Connected

Nesteggg Facebook

The Nesteggg Group ©2019
All Rights Reserved

Get in Touch

1127 St. Paul Ave
Tacoma WA 98421

1-(888) 987-NEST

accounting@nesteggg.com

Web Design & Maintenance by AquaZebra

constant contact

Copyright © 2023 · Executive Pro Theme on Genesis Framework · WordPress · Log in