Pricing added to track – trace The California Department of Tax and Fee Administration (CDTFA) has adopted proposed emergency Cannabis Tax Regulation 3702, California Cannabis Track-and-Trace, to require the wholesale cost and retail selling price of cannabis and cannabis products to be recorded in the California Cannabis Track-and-Trace (CCTT) system.
Text of California Code of Regulations, Title 18, Division 2, Chapter 8.7, Section 3702(A new regulation to be added to Cal. Code Regs., tit. 18, div. 2)
Regulation 3702. California Cannabis Track-and-Trace.
A distributor or cannabis retailer that is required to record commercial cannabis activity in the California Cannabis Track-and-Trace system pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act (commencing with section 26000 of the Business and Professions
Code), shall enter into the California Cannabis Track-and-Trace system specified information as follows:
(1) Wholesale Cost. When cannabis or cannabis products are sold or transferred to a cannabis retailer in an arm’s length transaction, the distributor and cannabis retailer shall enter the cannabis retailer’s wholesale cost of the cannabis or cannabis products.
(2) Retail Selling Price. When cannabis or cannabis products are sold in a retail sale, the cannabis retailer shall enter the retail selling price of the cannabis or cannabis products.
Note: Authority cited: Section 34013, Revenue and Taxation Code. Reference: Sections 34010, 34011 and 34015, Revenue and Taxation Code; Sections 26067 and 26068, Business and Professions Code.
After submission of the proposed emergency regulation to the Office of Administrative Law (OAL), OAL will allow interested persons five calendar days to submit comments on the proposed emergency regulation. More information about OAL’s notice and comment process is available on OAL’s website https://oal.ca.gov/regulations/emergency_regulations/Emergency_Regulation_Process/.
Questions regarding the substance of Regulation 3702 should be directed to Monica Gonzalez Silva, Tax Counsel IV, by telephone at (916) 323-3138, by e-mail at [email protected], or by mail at California Department of Tax and Fee Administration, Attn: Monica Gonzalez Silva, MIC:82, 450 N Street, P.O. Box 942879, Sacramento, CA 94279-0082.