FAQ
Rules & Regulations Related to Medicinal Sales in Santa Ana, California:
California State Regulations
Licensees may conduct business with other licensees irrespective of the A-designation or M-designation on their licenses.
Licensees authorized to engage in distribution shall only transport and sell cannabis goods designated as “For MedicalUse Only” to M-designated retailers or M-designated microbusinesses authorized to engage in retail sales.
Licensees authorized to engage in retail sales shall only sell cannabis goods designated as “For Medical Use Only” to medicinal customers.
Taxes
CA Excise Tax = 15% of gross receipts
Santa Ana Local Medicinal Tax Rate = 5% on gross receipts
CA Sales Tax = None IF the customer presents a valid MMIC (Medical Marijuana Identification Card) issued by the CA Dept. of Public Health.
MMIC (Medical Marijuana Identification Card)
Visit this website to learn more about the MMIC program: https://www.cdph.ca.gov/Programs/CHSI/Pages/MMICP.aspx
NuggMD/ or any other online cards do not meet MMIC standards per the CA Dept. of Tax and Fee Administration.
If a customer has NuggMD or alike, customer must pay sales tax but would be able to take advantage of the 5% Santa Ana local tax if licensee’s internal policies allow.
If the Santa Ana local tax calculation is itemized on the receipt, then it is also subject to excise tax.
Sample $100 medicinal sales transaction with a MMIC customer: Total = $100 + $5 Santa Ana municipal tax = $105 x 15% (excise tax) = $120.75.
Do not hesitate to contact Regulatory Compliance Counsel, Tatev Oganyan at tatev@theoganyanagency.com or 818-237-7867, to further discuss.
Authority