Cannabis Business Tax

What is Cannabis Business Tax?

On August 19, 2020, the City Council adopted Ordinance No. 20-OR0502-1  which established a tax on the privilege of conducting business relating to Cannabis in the City of Oceanside (Oceanside City Code  Chapter 34, Article V ).

Cannabis Business Tax is separate and in addition to all other taxes and fees; including the City of Oceanside Business License Tax. Additional information regarding the City’s business license requirements can be found via the following link.

Business License Application and Information

 

How is Cannabis Business Tax Paid to the City of Oceanside?

Cannabis Business Tax shall be paid, in arrears, on a monthly basis. Each person owing a cannabis business tax each calendar month shall, no later than the last day of the month following the close of the calendar month, file with the tax administrator a statement ("tax statement") of the tax owed for that calendar month and the basis for calculating that tax.  POSTMARKS WILL NOT BE ACCEPTED

Monthly Cannabis Tax Remittance Form

Cash payments will require a signed payment agreement and all procedures outlined in the agreement must be followed.

Cannabis Payment Memo Agreement

 

Cannabis Tax Rates

Business Type

2021 Cannabis Tax Rate

Retail

5% of Gross Receipts

Manufacturing

2.5% of Gross Receipts

Distribution

2% of Gross Receipts

Nurseries

2% of Gross Receipts

Cultivation

1.5% of Gross Receipts

 

 

Penalties and Interest

Any person who fails or refuses to pay any tax or fee imposed by this Chapter 34, Article V when due shall pay penalties and interest as follows:

A penalty equal to ten (10) percent of the tax or fee, in addition to the amount of the tax;

An additional penalty equal to twenty-five (25) percent of the amount of the tax or fee if unpaid for more than a month beyond the due date; and

Interest charges on the amount of any and all unpaid taxes, fees, or penalties at the rate of one (1) percent interest per month from the date due until paid. Interest shall be applied at the rate of one (1) percent per month on the first day of the month for the full month and will continue to accrue monthly on the tax and penalty until the balance is paid in full.