Method 1: Export End of Month Report and Calculate all at once
Export the 'Purchase by Product' Report as a CSV and then calculate the Cultivation tax for each product type (Flower, Leaf, or Fresh)
Distru > Reports > Purchase by Product > Filter for current month > Download CSV
Method 2: Show Cultivation Tax Remittance on Purchase Orders
At the bottom of the PO > Add a Discount
Name it "Cultivation Tax"
Set the unit type to '$ Price'
Enter the amount
This requires calculating the tax before the PO is marked completed and uneditable (for metrc users)
Note: The amount will have to be calculated manually! Be very careful to ensure accuracy! More information about Cultivation Tax rates can be found below as well as on the CDTFA Tax Guide for Cannabis Business
Cultivation Tax Rates - Effective Date: January 1, 2020 – Present
Cannabis Flower: $9.65 per dry-weight ounce / $154.72 per dry-weight pound
Cannabis Leaves: $2.87 per dry-weight ounce / $45.92 per dry-weight pound
Fresh Cannabis Plant: $1.35 per ounce / $21.60 per pound
(Fresh cannabis plants must be weighed within two hours of harvesting)
Example
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Invoice From Cultivator to Distributor #1
1000 lbs Trim @ $100 per unit . . . . . . . . . . . . . . . . . . . . . . $100,000
Cultivation tax remittance . . . . . . . . . . . . . . . . . . . . . . . . . - $45,920
Amount due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $54,080
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Invoice From Distributor #1 to Distributor #2
1000 lbs Trim @ $125 per unit . . . . . . . . . . . . . . . . . . . . . . . $125,000
Cultivation tax remittance . . . . . . . . . . . . . . . . . . . . . . . . . . -$45,920
Amount due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $79,080
...In instances where there are multiple distributors and/or manufacturers involved, the associated cultivation tax collected will follow the cannabis or cannabis product and must be passed to the next licensee in the transaction until the cannabis or cannabis product reaches the distributor conducting the final quality assurance review. Each party to the transaction, from the original sale from the cultivator, to the final sale or transfer to the distributor, is relieved of its liability for the cultivation tax by receiving a proper receipt for payment of the cultivation tax from the next party in the transaction.
In other words, the Cultivation Tax payment can and should be passed from one party to the next. A party is relieved of liability only upon "receipt of a proper receipt for payment of the cultivation tax from the next party in the transaction."
When purchasing from a cultivator or selling to another distributor, the Cultivation Tax must be documented as essentially a pass through expense.
The distributor doing final testing of the finished product is then responsible for remitting the Cultivation Tax payment to the CDTFA.