Cannabis Business Tax

Making Payments

Payments can be made in the following ways:

  1. Mail (check only - no cash): City of Cotati, Administrative Services, 201 W Sierra Avenue, Cotati, CA 94931
  2. Phone (credit card only): Call 707-665-4236
  3. In-Person (by appointment only): Call 707-665-4236 to schedule.

Tax Rates

Initial cannabis business tax rates shall be set as follows:

  1. Cultivation Initial Rate: two percent of gross receipts or $5.50 per square foot of cannabis cultivation area, at the taxpayer's election, except that vertically integrated businesses, as defined in Section 5.30 of this code, must use the per square foot rate.
  2. Manufacturing Initial Rate: one percent of gross receipts
  3. Stand-Alone Distribution Business Rate: two percent of gross receipts
  4. Retailers Initial Rate: three percent of gross receipts. Sales to persons with a physician's recommendation or a state-issued medical identification card, issued for medical purposes, shall be excluded from the calculation of gross receipts for the purpose of the cannabis business tax. Physician's recommendation means a recommendation by a physician and surgeon that patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code. State-issued medical identification card means a document issued by the State Department of Public Health that identifies a person authorized to engage in the medical use of cannabis and the person's designated primary caregiver, if any, in accordance with Section 11362.71 of the Health and Safety Code.

Read the City of Cotati Cannabis Business Tax Ordinance, 5.30 in its entirety. 

Related Documents

Business Located Within City Limits

Businesses with Locations/Operations Outside City Limits - Tax Apportionment