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 Ave., 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 for a term of three (3) years beginning the day the Ordinance goes into effect (December 2018):

A.     Cultivation Initial Rate: two percent (2%) of gross receipts or $5.00 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.

B.     Manufacturing Initial Rate: one percent (1%) of gross receipts

C.     Stand-Alone Distribution Business Rate: two percent (2%) of gross receipts

D.     Retailers Initial Rate: three percent (3%) 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 a 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.

Quarterly Tax Submission Form
Tax Apportionment Form

Please click here to read the City of Cotati Cannabis Business Tax Ordinance, 5.30 in its entirety.