CA SB1281

Eliminates the cannabis cultivation tax effective January 1, 2023, and reduces the excise tax from 15% to 5% of gross receipts on retail sales of cannabis and cannabis products.

Shifts excise tax collection responsibility from distributors to cannabis retailers, who must collect the tax from purchasers and remit directly to the Department of Tax and Fee Administration beginning January 1, 2023.

Requires cannabis retailers to obtain a separate cannabis tax permit from the department, with any person engaging in business as a retailer without a valid permit guilty of a misdemeanor.

Mandates the Department of Finance to estimate annually the revenue lost from elimination of the cultivation tax and reduction of the excise tax, with the Controller transferring equivalent funds from the General Fund to the California Cannabis Tax Fund upon legislative appropriation.

Takes effect immediately as a tax levy and declares the bill furthers the purposes of the Control, Regulate and Tax Adult Use of Marijuana Act (Proposition 64).