Cannabis-based BusinessesFebruary 2022 Tax News

Information and resources for cannabis-based businesses

As we begin the New Year, it’s a good time to inform your cannabis-based business clients about available information and resources. A cannabis business files income tax returns just like other businesses; however, there may be some differences which may include:

• Deductions
• Credits
• Unique payment and record keeping methods

Our Cannabis Industry webpage has additional information about the different business types available and their specific filing requirements.

If your cannabis business client has to pay their tax obligations in cash, remind them of our no cash policy. We recognize that some taxpayers may experience a hardship if required to pay by means other than cash. Those taxpayers may apply for an exemption to our no cash policy using FTB 3711.

After we receive the exemption application, we will respond in writing within two business days. If approved, the taxpayer or their representative should use our convenient online appointment feature to schedule an appointment at their nearest field office to make a cash payment. Requests for appointments need to be made at least two business days prior to the date you wish to make the payment.

Additional Resources

Here are some additional resources that are available for Cannabis businesses:

• Department of Cannabis Control
• Cannabis Industry Payroll Tax Reporting
• Tax Guide for Cannabis Businesses