Cannabis Business ERP’s: How to choose the right seed to sale software.

Choosing the right cannabis business ERP (enterprise resource planning system) will be critical for marijuana businesses with big expansion goals. A full ERP system means more than just choosing a seed to sale software. Your ERP should include software or a suite of software to help you organize your business intelligence for all areas of your cannabis business including accounting, human resources, customer relationship management, and all of your compliance reporting needs. 

There is a huge selection of ERP systems across the world, but ERP’s for the cannabis industry are harder to find. Many of the marijuana industry’s seed to sale software company’s claim to be ERP’s, however have limited functions beyond inventory control, point of sale and hopefully, integrated state cannabis business reporting. If you choose a seed to sale software for your marijuana business that has limited functionality, be prepared to pay much more in other softwares and software integrations to complete your ERP needs.

When choosing the right seed to sale software there is a lot to consider. We have prepared a list of the top 7 things to consider when choosing a seed to sale software. This provides you with the fundamentals of understanding how to choose the right cannabis ERP system.

Top 7 Things To Consider When Choosing a Cannabis ERP

  1. Are the software providers you are considering innovating in the cannabis industry? – The Cannabis Industry has special considerations when it comes to inventory and compliance tracking. Choose a provider that is actively innovating with the ever-changing cannabis industry. Adilas is one of the top 5 used cannabis pos systems in the US and is constantly innovating for marijuana businesses. 
  2. What models or features are offered for accounting, human resources, customer relationship management, cannabis compliance and reporting needs? – Options offered by different providers differ greatly. More features means fewer separate solutions are needed. 
  3. Is the system cloud based or do you have to host your server locally? – Cloud based options allow the system to be accessed remotely. This can provide a great deal of convenience. Hosting a system locally can also be expensive. 
  4. What does the software company offer for data security? – How is your data protected if something happens? Many software companies use multiple methods for ensuring data security and backup.  
  5. Which system seems the most user-friendly? – It is important that the system “makes sense” to the user. Look for logical progression in placement of functions and easy visual flow. 
  6. How customizable is the system? – Does it offer an open API? How well does the software integrate with your current systems? Does the software integrate with state tracking systems? 
  7. Compare the costs and benefits of the cannabis software systems. Are the prices competitive? – Gather pricing and benefits details for multiple systems to compare and analyze what you’re getting for the cost of each system.
  8. What is involved in implementing each solution? – How much work is involved in getting started in the new ERP? Are processes in place to simplify implementation?
  9. What kind of support is offered by the provider? – What happens when you need help? Who can you contact and under what circumstances? Are there training and implementation options? Does customer support understand the unique needs and processes of the cannabis industry?
  10. What do current users of the system think about it? – Users are often the best judge of a system. They will know intimately where the system excels and where it needs work. 

Conclusion

You probably noticed that we gave you more than 7 things to consider when choosing a cannabis ERP. Tracking cannabis businesses and data is complex. We offer 9 more Tips for Selecting and Implementing Your Seed to Sale Software System here. Regardless of if you are new to seed to sale tracking systems, or you are currently using one, there is a lot of exploratory research to be done before choosing a cannabis ERP.

There are a lot of online resources available. Take the time and dig in. Learn everything you can about cannabis ERPs. Adilas20 online learning for cannabis businesses is a great place to start for those who prefer online training. The more you know about the benefits, features, and drawbacks of these systems, the better equipped you’ll be to make the decision that best fits your company.

When choosing a new cannabis POS or inventory control system, there will be a lot of steps to successfully implementing the new system.

We chose adilas as our preferred seed to sale software because it is the closest thing to an all in one solution for an ERP that we could find. It’s open API allows for full control over building the software to become your best cannabis ERP. 

Adilas420 is happy to help. Get help from an expert or take an online course to learn more today. 

Cannabis POS – New Dispensary Software Implementation

Changing Cannabis POS (Point of Sale) systems can seem like a daunting task with lots of details that need attention. If you have decided to transition to a new Cannabis POS then the amount of time spent migrating data to a new system can be overwhelming. One important detail is preparing your existing data for entry into the new system. Some systems allow for an upload from a properly formatted spreadsheet. This will populate the data needed to get started in your new inventory control system. Spreadsheets are an excellent way to gather and organize the needed information.

Here are four easy steps for preparing your data for transitioning to a new system. If you chose Adilas as your new Cannabis POS system then we will offer you tools for on-boarding including properly formatted spreadsheets. The following steps can be used for any Cannabis Point of Sale software.

4 Easy Steps to Prepare Your New Cannabis POS

1. Collect and/or export your employee user list. – Gather your employee user details and be sure to note job title or duties. Your new system will need users entered with the appropriate permissions level and knowing at what level to set those permissions will save you time later. 

2. Collect and/or export your customer list. – Gather your customer information and be sure to include all relevant details. If you are keeping detailed customer records, such as name, email, and marijuana licensing details, migrating your existing data will be important for customer relationship management and compliance purposes.

3. Collect and/or export your vendor list. – Gather your vendor list. When items are entered in the system they will need to be associated with the proper vendor so it is important to have all those details correct prior to entering inventory in the new system. 

4. Collect and/or export your item list. – Gather your inventory item list. Your item list should include vendor, category, unit of measurement, etc. This is a great opportunity to consider any changes needed in item naming conventions or categories. 

For more details on transitioning to a new system, watch this video or contact an expert! Our trainers at Adilas420.com can help you choose or transition to a new Cannabis POS system. Let us help you make sure your new Cannabis Dispensary Software is your last!

Looking for better cannabis business reporting?

Get Seed to Sale Software and Beyond:

Our seed-to-sale software for use in the cannabis industry just got more exciting! We are committed to providing an all in one solution that will ensure success in all aspects of running your cannabis business. This includes your cannabis business reporting.

Beyond the new developments in the works for new features offered exclusively by Adilas420, we are advancing some of the features available with current and new Adilas partnerships! Adilas introduced Headset software integration to all of their Adilas customers last year. Now, the integration is better than ever.

Adilas Headset Integration for Cannabis Business Reporting!

Headset is in the process of revolutionizing the cannabis industry as we know it. They are providing cannabis operators with the cannabis business reporting they desire. In pairing with Adilas420, Headset’s seamless integration and beautiful visuals will provide the best data collection, aggregation and insight that is offered for the industry. We are excited to offer this incredible opportunity to further your understanding of your customers, operations and opportunities for growth.

Headset offers a trifecta of programs that help to connect each aspect of your business. Retailer integrates with Adilas420’s point-of-sale system to collect and optimize data collection. Headset provides real-time business reporting on sales trends, profit analysis and effectiveness of sales employees. Watch the video below or click here for a full introduction of all the tools Headset offers for cannabis business investors, dispensary managers and budtenders.

Bridge works to bridge communications between cannabis dispensaries, distributors, vendors, suppliers. It allows a dispensary to directly communicate with vendors and streamline reorders. The seed to sale software connection between Adilas and Headset allows Adilas420 users to monitor inventory levels and product turnaround. It also offers suggestions and alerts for restocking strategies for marijuana and medical marijuana retailers.

Finally, Insight combines the powers of Retailer and Bridge in order to combine massive data collection providing market analysis for cannabis business insight. It allows you to see what is selling in multiple stores at once. The software allows you to compare sales between the stores. It also allows you to get market data to compare your cannabis sales to others in your market.

Upgrade Your Adilas & Headset

Here at Adilas420 we are working closely with the Headset team to combine forces. We are working to seamlessly strengthen your brand and cannabis business intelligence. In addition to our online learning platform and marijuana SOP’s for sale, we will be providing demo and informational videos on how to use Headset for the cannabis business reports you need. Headset is constantly working on improvements to their platform to make it more user-friendly and optimize the dashboards for insight. Headset is ramping up to release Headset 3.0 and we are excited to be a part of the ride.

Making your experience running your cannabis business as smooth as possible is always our priority. Headset’s seed to sale software integration takes roughly 15 minutes and live data reporting is available within 24 hours. Headset is subscription-based for commercial purposes, but to promote this exciting partnership they are offering the Retailer platform free of charge for a limited time. If you would like to learn more about this exciting partnership and how to get better cannabis business reporting please head over to the Adilas420 shop and enroll for a free Headset Demo or Activation.

Colorado Cannabis Delivery Software

This month, I was visiting Colorado. The local news reported about opening up the market for cannabis delivery to patients. This reminded me of a recent marijuana delivery order in Arizona. I recently used the marijuana delivery software, Suburp.com  because I was curious to see how it worked. Similar marijuana delivery software platforms like Blackbirdgo, which is cannabis distribution business software in Nevada have paved the way for ease in online ordering for cannabis delivery. Many cannabis businesses that use Adilas as their seed software, which includes out of box delivery tools may also use other third party software integrators to create various user experiences.  

Being both a patient in Colorado and Arizona. I have seen how the industry has grown exponentially. Each state has faced unique challenges in marijuana delivery laws and processes. The current Colorado House Bill 19-1234 would allow Colorado to open up the cannabis delivery market. 

Colorado House Bill 19-1234

Currently, in Colorado,  House Bill 19-1234 is being introduced which would start allowing medical marijuana to be delivered to patients starting January 2, 2020. Recreational delivery would start on January 2, 2021. There is a $1 delivery charge that would be included in the delivery to cover law enforcement needs in that state.

In Arizona, some dispensaries do not charge patients for delivery. As an Arizona patient, one can order medical marijuana without having to leave their house. 

Currently in Colorado, the patient has to use a caregiver to have their medicine delivered. This bill would free up patients to order marijuana online with services like Superb. On a business level, “the measure would establish a licensing system for such delivery services and also require training for delivery permit holders.

The Need for a Deliver Licensing Program in Colorado

Right now, Colorado has a problem with illegal cannabis delivery. Arizona and California also have a saturated black market for distribution. A quick search on Google shows Colorado companies advertising deliveries for $20 as caregivers. In some states, individuals or caregivers use a loopwhole like selling something else, and delivering the marijuana for free. 

The bill would require the state Marijuana Enforcement Division to create a delivery licensing program for dispensaries and transporters, who could deliver marijuana products to patients after the MED sets up a regulatory system for training requirements,

This bill would hopefully ensure safety measures in cannabis delivery to patients, training on transportation, lower the cost for patient’s delivery, and ensure transparency between the dispensaries and government tracking regulations.

We want to hear from you!

Would you like to learn more about how to use a adilas cannabis delivery software? Learn more about cannabis delivery and distribution here.

Are you in a state that allows cannabis delivery? One that isn’t? What are your thoughts on this? 

Arizona Cannabis Extracts

A new Arizona House Bill stems from the 2016 conviction of a medical marijuana card holder. The individual was sentenced to 2 years for possessing 0.05 ounce of cannabis resin. While the patient held a valid Arizona medical marijuana patient ID, the courts ruled that cannabis extracts are not covered under Arizona’s Medical Marijuana Act (AMMA). Since then, the state of Arizona has faced difficulty defining the use of allowed cannabis extracts. The state Court of Appeals ruled in 2018 that those extracts or concentrates aren’t protected by the AMMA. The Supreme Court later chose to review that decision. 

Yavapai County Attorney Sheila Polk was the first to interpret the law to mean that anyone buying extracts from a dispensary can be charged with a felony.” Currently, the Arizona Revised Statutes (A.R.S.) represent the statutory laws of the state of Arizona. The A.R.S. and the Arizona Medical Marijuana Rules each contain requirements applicable to the Arizona Medical Marijuana Program. Accordingly, to fully understand all the requirements applicable to the Arizona Medical Marijuana Program, the A.R.S. and the Arizona Medical Marijuana Rules should be read in conjunction with each other.

The new Arizona bill HB 2149 will clarify the allowance of cannabis extracts.

HB 2149 would change the law’s language for “usable marijuana” from “the dried flowers of the marijuana plant, and any mixture or preparation thereof, but does not include the seeds, stalks and roots of the plant” to:

  • “All parts of any plant of the genus cannabis and the seeds of the plant.”
  • “The resin extracted from any part of a plant of the genus cannabis, and every compound, manufacture, salt, derivative, mixture or preparation of the plant or its seeds.”
  • “Every compound, manufacture, salt, derivative, mixture or preparation of the resin or tetrahydrocannabinol.”
  • “Includes plant material from which the resin has not been extracted.”
  • “Does not include the mature stalks of the plant or the sterilized seed of the plant that is incapable of germination.”

If the bill passes, it would definitively legalize all forms of marijuana in Arizona. The bill would allow cannabis extracts to be sold at dispensaries and provide protection for patients. Currently, Arizona Dispensaries have continued to sell edibles and concentrates. 

The Need for Cannabis Extracts

In Arizona, medical marijuana patients depend on cannabis extracts such as vape-pen cartridges, shatter, and THC-infused food and drinks. This ongoing issue is very important for many Arizona MMJ patients. Should the bill not pass and the supreme court agree with the lower courts, patients alternatives to smoking such as tinctures, edibles, and vaporizable oil and waxes would no longer be available. This product uniquely works for many patients and some consider it a “healthier alternative.”

Other States

Other states are also working to clarify laws concerning cannabis products. Ironically, they are preferring extracts, concentrates and edibles over dry flower materials. For example, in Florida and New York, the laws allow for extracts and edibles but not flower. 

Need for Consistency in Rules

Rules for states to allow/disallow cannabis flower, edibles, and extracts are complicated subjects and should be addressed by the state prior to implementation of their legal markets, when possible. At this moment, rules and regulations vary from state-to-state which will make federal legalization and national cannabis distribution even more complex. If the marijuana bill does not pass here in Arizona, many patients will be affected and could face felony charges if caught purchasing banned items. The need for this bill to be approved will allow patients choices for needed medication.

Interesting Sources & Articles:

https://www.phoenixnewtimes.com/news/legislation-could-undo-arizona-court-ruling-on-medical-pot-extracts-11189834

https://www.ganjapreneur.com/arizona-lawmakers-considering-bill-to-solidify-legality-of-cannabis-extracts/

https://azmarijuana.com/arizona-medical-marijuana-news/arizona-lawmakers-vote-5-2-to-advance-bill-to-legalize-marijuana-extracts/

https://www.phoenixnewtimes.com/news/sheila-polk-explosives-cannabis-extracts-marijuana-rodney-jones-case-11202113

https://www.occnewspaper.com/oha-issues-bulletin-to-clarify-cannabis-extracts-and-concentrate-regulations/

https://www.forbes.com/sites/andrebourque/2019/02/12/legalizing-florida-marijuana-flower-comes-down-to-dollars-and-sense/#128b7c8b30af

https://news.weedmaps.com/2019/02/arizona-lawmakers-weigh-bill-to-define-concentrates-as-medical-cannabis/ 

 

Document Management Is Essential For Cannabis Business Compliance. Read Why.

A document management system (DMS) is essential to for cannabis business compliance. 

Cannabis companies can struggle with document control best practices. As a cannabis company, you must keep track of inventory, laws, and procedures. In this topic we offer some tips to help you with cannabis document management and record keeping and controls. 

Naming Files

First, naming files and folders and knowing the names will lessen time finding that item later. Establishing best practices with naming conventions for files, items or reports and document names is important.
 
Tips on how to create a naming system that will work:
  • When storing records outside of a automated system, like ADILAS, create file folders with years then months
  • Make sure naming abbreviations make sense
  • Don’t name the file or item too long

Folders and Categories

Folders and naming conventions help organize your data. The issues arise when you can’t find what you are looking for. ADILAS gives you many ways to sort various types of files such as Purchase Orders, Production Orders, Invoices and Customer records. Having memorable tags on the files to search keywords and find items even more quickly. Another name for this is called metadata. Metadata describes other data associated with the file. It provides information about a certain item’s content. ADILAS offers special features like flex grids, and attributes to further describe your cannabis inventory and other business records.  
A data dictionary, explaining naming conventions and how to search within various records will assist your team in organizing records and reporting on the business.

Version Control

What happens when you need to edit a document? In traditional methods of file management, organizations may end up with duplicate versions of the same folder, category or document. ADILAS business software will help you maintain version control. Automated version control keeps track of files within your content management system. It saves memory and space on computer systems and servers.
 
All documents in any DMS should have an author on all documents whenever changes or updates occur. When managing version control manually for documents not stored in ADILAS:
  • Instead of using versions such as v1, v2, etc. use a date at the end.
  • If starting at 1, use 01 for easier searchability in your system.
  • Have an author dedicated page with date and what occurred such as edits.
File control will assist your company when it comes time for audits. Having all of your documents in one system, such as an enterprise resource management system like ADILAS, will save time and money when you audited. 

Auditing System

In the cannabis industry, it is not a matter of “if” you will be audited, but “when.” Some cannabis companies wait to react when keeping documents up-to-date and organized for an audit. When regulators audit a system, they look to see that you have your data and documents organized. Using a system like ADILAS combine with setting up an internal audit schedule will help.
A reliable DMS will save your company time, headaches and a lot of money. Adilas420 offer tools to help you prove cannabis business compliance. Checkout Adilas420 software for more about cannabis business software solutions.
 
Tips for auditing your system:
  • Setup a schedule for audits.
    • Monthly, quarterly, biannually, or annual depending on the audit.
    • Hire a third party, like Adilas420, to audit your seed to sale software and supporting documents.

Thinking About A Dispensary Digital Menu Board? Read this.

As a cannabis business there are things you need to know when it comes to procedures for cannabis customer and patient sales. It’s not just about having your business up and running, it’s about how you can best serve, educate and incentivize your customers and increase cannabis sales and profit. Having a dispensary digital menu board in your retail store will also support good operational procedures and cannabis compliance alike.

Give them a good greeting and waiting experience.

Sales start when the customer walks through your doors. When customers enter the doors of a local state licensed marijuana dispensary, they want to have information provided to me to keep me coming back. The operations and security requires customers/patients to present an ID. They are then added to a queue to purchase cannabis to verify the patient/customer information.

A good software will help expedite the customer queueing process and collect other information for sales and marketing, like a phone number or email address. Like most customers, many hate to fill out a paper (or many pages) of customer forms. Digitalize them please, it is the 20th century, plus it saves the trees!

Having an informative electronic menu board will assist customers in the end purchase. Digital menu boards will also help ease the pain of waits. Giving the customer the menu, current specials or educational information by electronic display will present a professional and modern feel. When a customer/patient is in the waiting room, they are looking at strains related to helping with their aliments, this is where that electronic billboard assists your customers in buying product and keeping them informed.

Have variety on your digital menu board.

Customers love variety! Even as a new industry, we know customers want variety. Variety means having the right products such as CBD tinctures or other CBD only products. This could be lotions to vape cartridges to edibles and flower depending on the state you are in.

Ideally, enter your inventory one time. 

If you are currently operating without an integrated menu board, you know how time consuming it can be to update your inventory in multiple places. We recommend you invest in software to save your budtenders time, your customers confusion and you money.

Websites drive traffic too.

Websites that are not updated with your inventory will drive customers to seek your competition. Cannabis custom

ers look at websites like Leafly and Weedmaps to compare menus and prices shop. Driving customers to your website will start a more personal experience and increase your brand value.  Save your staff time by integrating your customer relationship management system (CRM), online menus, point of sale and in store signage. Enter the inventory one time. Push updated inventory on hand to your ecommerce website and digital menu board at the same time. This allows customers and Budtenders to see the same menu in multiple places.

Digital menu boards help operations and customers.

Dispensary digital menu boards are key to sales once customers are in your waiting room.  Most customers coming in now have smart phones, this means we are looking up the strains as we are in your waiting room. Use the billboard to your advantage, change it up, use videos, and showcase your products.

We can also offer you advice on how to display item names. Lets face it, in the cannabis industry, we have some weird item names. Let us help you with item naming conventions, imagery and branding. Click this link to find out more about how we can help you.

 

 

To Grow or Not to Grow? Maine- Where to Start.

Getting seeds or cuttings to start your cannabis business may sound easy, but it can be more complicated than expected. This could be true due to rule, or simply due to timing, facility needs, environment, ect. can Of course, the harder part is the next chapter, where we address what the “master grower” needs to do to get “the fire” the “patients” want? How do you make your garden grow?

A Maine Gardner tells a nice story of the basics on how to grow marijuana as a “legal to cultivate patient” in Maine.

“The best solution is to befriend someone who has a prescription for medical marijuana..”

Tom Attwell explains in a Portland, ME newspaper. This is true for a cannabis business operator-to-be as well. Your garden starts with a patient in need.

In many states, including California and Maine, patients with prescriptions have been allowed to grow marijuana at home, under the direction of a caregiver or dispensary for over a decade. Other “patients” have grown their own garden in secret closets and basements for even longer.

Marijuana for healthcare has been used for decades and the naturally grown as opposed to synthetic has always proven to be more effective. There are many different ways to grow successfully, hydro, soil, indoor, out door, greenhouse ect. The trick to choosing the right methodology is first by defining a successful gHow do you define success? Highest Yield? Highest THC? Highest number of patients helped?

 

There are a lot of different high’s you could be reaching for, lots of puns intended.

The first step, is to try it one way and see what works. The second, is to try, try again. But don’t reinvent the wheel, there are centuries worth of resources if you look for them. As with marijuana patients, you need to find what is right for you, for your business, for your patients, for your customers.

After all, it is not about your harvest today, but the seeds you plant to get started for your next one. Your ultimate goal, should be to keep growing. You will also need to keep changing and keep educated.

 

“So he grows a little garden in the backyard by the fence / He’s consuming what he’s growing nowadays in self-defense / He gets out there in the twilight zone / Sometimes when it just don’t make no sense.”

Source: It may be legal to grow marijuana in Maine, but it’s not easy to get gardening advice – The Portland Press Herald

 

 

Need help getting started? Contact Us!

California Cannabis Microbusiness Licensing 10 Facts You Should Know

California Cannabis Microbusiness Licensing 10 Facts You Should Know

A California cannabis microbusiness license will allow you to grow, package, and sell product.

Before you have a microbusiness license, you will need to secure a location. Then you will have to get approval. Depending on where you start your business or open up a new one, the less amount of people, the less amount of licenses.

Remember you must be aware of local and federal laws. This means you will need to track everything, including cannabis waste, to make sure you do not lose your license.

Here are 10 facts you need to know if you want to get a microbusiness cannabis license in California (in no particular order):

  1. The Adult Use of Marijuana Act (AUMA) allows cannabis companies to hold at least 3 licenses under a microbusiness license in California.
  2. You must have at least 3 out of the 4 licenses to get a microbusiness license.
    1. For example, this means you can produce crops, package product, and transport marijuana all under one license.
    2. Licenses you can have under a microbusiness include: cultivation, manufacturing, distributing (including retail delivery) and/or a store.
  3. License fees range from $5,000 to $120,000.
    1. $5,000: Revenue Up to $500,000
    2. $15,000: Revenue between $.5 million to $1.5 million
    3. $42,000: Revenue between $1.5 million to $4.5 million
    4. $120,000: Revenue greater than $4.5 million
  4. It is easier to get a delivery-only license than a distribution license.
  5. There are 19 different license types in California.
  6. If you are a large grower of cannabis, you are prohibited from the microbusiness option.
  7. You are still need to have a security plan for all licenses. This means you will need to have armed guards and 24 hour video coverage.
  8. Zoning can be an issue. Many California cannabis businesses struggle finding a location. Before getting your license, you will need to secure the location.
  9. Growers can get a transport-only license easier than a distribution license.
  10. As a grower, you are allowed to grow up to 10,000 square feet of cannabis.

Want to learn more? Enroll in a course today!

Sources:

https://restislaw.com/cannabis-microbusiness-licence/

http://www.calcannabislaw.org

Tracking Cannabis Taxes: Phoenix, Arizona – This Week in News

The Phoenix, Arizona City Council voted down a measure to increase the dispensary and cultivation yearly cannabis taxes. The proposed bill suggested a 17% tax on State Licensed Arizona dispensaries and cultivators. Cannabis taxes this high could have caused Phoenix dispensaries to go out of business. The concern for local dispensary owners was that a tax this high could put dispensaries and cultivators out of business. Leading to patients having limited access to much needed medication.

“We are desperate for money,” Mayor Thelda Williams said. “I’m not about to touch food tax, sales tax or property tax, so I need a whole new source.” Currently, the Arizona Department of Health Services collects a license tax from medical marijuana annual licenses. Licenses include medical marijuana cards, businesses operating in the cannabis industry, and employee agent cards. 

How does Arizona marijuana taxes compare to other states?

Typically, taxes will be higher in legalized states versus medicinal use markets. Some states tax up to 21% for adult recreational use markets. In most states where it is both legal for adult consumption, patients will pay normal sales tax or will be tax exempt.

“Colorado imposes a 15 percent excise tax on the sale of marijuana from a cultivator to a retailer. In addition, the state levies a 15 percent sales tax (up from 10 percent in 2017) on retail sales to customers.” stated on Tax Foundation’s website.

California implies a relatively complicated tax rate of:

  • $9.25 per dry-weight ounce of cannabis flowers,
  • $2.75 per dry-weight ounce of cannabis leaves, and
  • $1.29 per ounce of fresh cannabis plant*.

California taxes cannabis retailers 15% for retail cannabis and cannabis derived products. Recreational adult use customers pay state, local, and additional marijuana taxes at the point of sale.

Patients may be exempt from all or some taxes depending on locations and patient status. Most states that allow for medical marijuana, a person can obtain a license for a nominal fee. Arizona has higher rates compared to other states for obtaining a medical marijuana license. 

How much tax does cannabis businesses pay?

Cannabis taxes and rates will vary from state to state and city to city. All state licensed cannabis businesses will pay federal taxes. Any increase to the taxes will affect profits and affording cannabis. The 280E tax code that addresses what expenses can be wrote off limits many businesses in this industry. Some businesses pay upwards of 40% in federal taxes. The cannabis tax problem will continue to be an issue for cannabis businesses until congress addresses issues such as marijuana being a schedule 1 drug, filing taxes, and being able to bank legally.

The issues that the cannabis industry faces in the US, in regards to cannabis taxes are complex. Cannabis is big business. Not only does this industry make billions of dollars annually, it is a highly regulated market. Companies have to ensure that they are reporting correctly and filing taxes regularly. The issues faced from proper tax collection to reporting will affect a business to operate in the future. Taxes play an important role in the bottom line and ability to grow. 

The cannabis tax isn’t going away. The cannabis industry will continue to face real issues related to consumer safety, protection, and compliance. Government support and regulation will be necessary as it is is for most consumer goods. 

What do you think would be a fair and simple way to tax cannabis businesses and consumers?

Other Sources:

Phoenix New Times: https://www.phoenixnewtimes.com/news/phoenix-mayor-new-tax-medical-marijuana-dispensaries-10875417

AZCentral: https://www.azcentral.com/story/news/local/phoenix/2018/10/02/phoenix-city-council-kills-medical-marijuana-tax/1485945002/

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