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explanation of marijuana seed to sale requiremnets california

Excise Tax
Immature plants, clones, and seeds are subject to the 15 percent cannabis excise tax when sold at retail. Nurseries may sell immature plants, clones, or seeds to another cannabis licensee. However, a distributor is required to transport the cannabis from the nursery to the licensee and when the immature plants, clones, or seeds are sold or transported to a retailer, the distributor is also required to collect the 15 percent cannabis excise tax from the retailer based on the average market price of the immature plants, clones, or seeds. The retailer is responsible for collecting the cannabis excise tax from their retail customers when the immature plants, clones, or seeds are sold at retail.

Sales and Use Tax
Sales tax applies to the retail sale of immature plants, clones, and seeds. Sales and use tax does not apply to a cultivator’s purchase of immature plants, clones, and seeds when the products grown from them will be resold as part of the cultivator’s regular business activities. The seller should obtain and keep a valid and timely resale certificate from the purchaser as support that the sale was for resale. For information on sales for resale and resale certificates, see publication 103, Sales for Resale.

Cultivation Tax
The cultivation tax does not apply to the sale or transfer of immature plants, including clones or seeds. The cultivation tax is imposed on cultivators for harvested cannabis that enters the commercial market; however, the definition of “enters the commercial market” specifically excludes immature plants and seeds.

This email is intended to give you an overview of how tax applies to immature plants, seeds, and clones and does not address all requirements for the cannabis industry. For additional information, we encourage you to read our online Tax Guide for Cannabis Businesses, or contact the CA Department of Tax and Fee Administration.

There is nothing illegal about keeping large amounts of cash in your home. Many people in California do it in case of an earthquake, or because they don’t trust the banks.

Examples of “selling” include giving someone marijuana in exchange for:

You don’t even need to interact with marijuana in order to possess it. Under the law, control of marijuana can be exercise through another person (an “agent”). 8

2. The penalty for possessing marijuana for sale in California

Subsequent offenses — or greater amounts — are punishable by larger fines and longer sentences.

Example: You own a commercial marijuana growing operation, and hire someone to run the day-to-day operations. Because you are exercising control of the marijuana through that person, you have constructive possession of any marijuana that is grown or processed there… even if you never go there yourself.

But cultivating more than six marijuana plants (or cultivating it where it is not legally permissible under local law) is a crime. For most adult defendants, it is a misdemeanor that carries up to six (6) months in county jail and/or a fine of up to five hundred dollars ($500). But it is a felony for:

For more information about California’s marijuana laws, or to discuss your case confidentially with one of our criminal defense attorneys, please don’t hesitate to contact us at Shouse Law Group. Our California criminal law offices are located in and around Los Angeles, Orange County, San Diego, Riverside, San Bernardino, Ventura, San Jose, Oakland, the San Francisco Bay area, and several nearby cities.