California | 2023 excise tax change
California dispensaries are now directly responsible for paying the cannabis excise tax, which had previously been paid to vendors for remittance to the California Department of Tax and Fee Administration (CDTFA). You can find details about this change on the CDTFA website.
Any inventory you brought in prior to 2023, for which the excise tax has already been paid to the vendor, qualifies for a tax credit reimbursement from the state.
Tax setup
The excise tax should now be applied at the point of sale. You can adjust your tax settings using the steps in the following articles:
Dutchie does not provide tax advice. Merchants using Dutchie products should determine their tax responsibilities by utilizing their own tax advisors. Dutchie provides tools that calculate taxes in many optional configurations. Dutchie does not and cannot ensure that tax calculations in Dutchie products are correctly configured. Configuring taxes is exclusively the responsibility of the merchant.
Reimbursement reporting
Each month in 2023, you can request a tax credit reimbursement from the CDTFA for excise tax paid to a vendor prior to 2023 on products sold in 2023.
Dutchie has a report that shows excise tax paid on pre-2023 inventory (based on the Inventory date field in Dutchie POS) that you've sold during a specified time frame in 2023. Use this report to determine the amount to claim for your reimbursements each month. Find it under Reports > State reporting > CA Excise Tax Reimbursement.