California Cannabis Seller’s Taxable Measure Includes Business Tax

A California cannabis retailer is liable for $120,600 after a state tribunal held that a city business license tax must be part of the calculations to determine its sales tax.

Ryan Burns Collective’s tax liability is determined on its taxable measure, which is an amount based on its gross receipts, the California Office of Tax Appeals said in an opinion released Tuesday. The gross receipts must include the business license tax Ryan Burns Collective charged its customers under state law, it added.

The California Department of Tax and Fee Administration audited Ryan Burns Collective for July 2018 through June 2021 ...