UPDATE: California Adds ‘Fresh’ Category for Cannabis Cultivation Tax

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This story was updated on Jan. 11 to explain that growers have a choice of how to pay the cannabis cultivation tax.

Marijuana growers can now choose to either pay a state tax on either dried or freshly harvested cannabis plants, the state Department of Tax and Fee Administration announced this week.

California voters approved Proposition 64 in November, which established the initial cultivation tax, which was based on the dry-weight ounce of cannabis flowers and leaves. The tax, which took effect Jan. 1, was $9.25 per dry-weight ounce of cannabis buds and $2.75 per dry-weight of cannabis leaves.

On Jan. 10, the tax agency announced that growers could instead pay $1.29 per ounce of fresh pot weighed within two hours of harvesting.

The state tax administration says each cultivator is responsible for paying the cultivation taxes on all harvested cannabis entering the commercial market to the distributor or manufacturer. For information, go to www.cdtfa.ca.gov/industry/cannabis, or call (800) 400-7115.

Health business reporter Dana Bartholomew can be reached at [email protected]. Follow him on Twitter @_DanaBart.

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