California operators, learn about changes to the excise tax in 2023 in Dutchie POS.
Notice
Dutchie does not provide compliance advice. Merchants are responsible for their own compliance. Internal and external Dutchie compliance documentation has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or compliance advice. Dutchie provides tools that assist in compliance in many optional configurations. Merchants should consult their own tax, legal and compliance advisors to determine how best to configure Dutchie compliance settings and, in general, how best to operate within the cannabis industry.
California dispensaries are directly responsible for paying the cannabis excise tax. Previously, this had 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 before 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 tax advisors of their own. 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 before 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.