FAQ

Rules & Regulations Related to Medicinal Sales in Santa Ana, California:

California State Regulations

  • Licensees may conduct business with other licensees irrespective of the A-designation or M-designation on their licenses. 

  • Licensees authorized to engage in distribution shall only transport and sell cannabis goods designated as “For MedicalUse Only” to M-designated retailers or M-designated microbusinesses authorized to engage in retail sales. 

  • Licensees authorized to engage in retail sales shall only sell cannabis goods designated as “For Medical Use Only” to medicinal customers.

Taxes

  • CA Excise Tax = 15% of gross receipts

  • Santa Ana Local Medicinal Tax Rate = 5% on gross receipts

  • CA Sales Tax = None IF the customer presents a valid MMIC (Medical Marijuana Identification Card) issued by the CA Dept. of Public Health.

 MMIC (Medical Marijuana Identification Card)

  • Visit this website to learn more about the MMIC program: https://www.cdph.ca.gov/Programs/CHSI/Pages/MMICP.aspx

  • NuggMD/ or any other online cards do not meet MMIC standards per the CA Dept. of Tax and Fee Administration.

    • If a customer has NuggMD or alike, customer must pay sales tax but would be able to take advantage of the 5% Santa Ana local tax if licensee’s internal policies allow.  

  • If the Santa Ana local tax calculation is itemized on the receipt, then it is also subject to excise tax. 

    • Sample $100 medicinal sales transaction with a MMIC customer: Total = $100 + $5 Santa Ana municipal tax = $105 x 15% (excise tax) = $120.75. 

Do not hesitate to contact Regulatory Compliance Counsel, Tatev Oganyan at tatev@theoganyanagency.com or 818-237-7867, to further discuss.

Authority

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