Legal Marijuana Sales Exceed $374M In Riverside County For 2021

RIVERSIDE COUNTY, CA — The total tax revenue on legal marijuana sold in California is $3.44 billion since Prop. 64 went into effect on Jan. 1, 2018, according to new state data released Wednesday.

The data was released as part of reporting on the state's cannabis tax revenue for the fourth quarter of 2021 by the California Department of Tax and Fee Administration. According to the administration, as of Feb. 16, total cannabis tax revenue to the state during the fourth quarter of 2021 was $308.56 million. The figure includes California’s cannabis excise tax, which generated $157.37 million; the cultivation tax, which generated $38.98 million; and $112.21 million in sales tax revenue from cannabis businesses. The figures do not include locally imposed taxes collected by cities and counties.

In Riverside County, total taxable cannabis sales in 2021 were $374,176,140, compared to $264,192,821 during 2020, according to the latest data from the administration.

On October 23, 2018, the County of Riverside Board of Supervisors approved an ordinance establishing the permitting process and regulations for commercial cannabis activities, but not all cities welcome marijuana or hemp businesses.

For example, Temecula prohibits cannabis businesses and Murrieta only allows cannabis testing labs. Lake Elsinore and Wildomar allow certain cannabis operations into their city limits, while there are some restrictions in the Pass Area. Coachella Valley cities have a smattering of different local ordinances.

In November 2016, California voters approved Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act. On January 1, 2018, two new cannabis taxes went into effect: a cultivation tax on all harvested cannabis that enters the commercial market and a 15 percent cannabis excise tax imposed on purchasers of cannabis and cannabis products.

Additionally, in areas where cannabis retailers are allowed, sales of cannabis and cannabis products are subject to state and local sales tax. Sales tax applies to sales of cannabis, cannabis products, and other merchandise such as pipes, rolling papers, and shirts. Certain retail sales of medicinal cannabis are exempt from sales and use taxes when the buyer holds a valid Medical Marijuana Identification Card issued by the California Department of Public Health.