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California Initiatives to Help the Cannabis Industry

by Mike Goral

Although cannabis businesses have been declared essential businesses in the state and many parts of the industry are seeing record sales, some cannabis companies are facing financial challenges during this COVID-19 crisis. As a means to help the industry that has provided millions of dollars of tax revenue to state and local governments, the California Department of Tax and Fee Administration, the Office of Tax Appeals and the Franchise Tax Board have worked with Gov. Gavin Newsom to offer the following incentives to cannabis companies:

  1. Extending state tax return filings and payments under $1 million to July 31
  2. Relief from tax interest and penalties
  3. A 60-day extension to file refund claims, annual fees, installment payments, annual reports and audits
  4. A 60-day extension to July 31 to request tax appeals
  5. A 12-month sales and use tax deferral of up to $50,000 for businesses under $5 million in annual taxable sales
  6. An extension to July 31 to file first-quarter taxes for businesses under $1 million in annual taxes

In addition, State Treasurer Fiona Ma indicated during an April 3 industry webinar that cannabis companies might be eligible for bridge loans of up to $50,000.  However, since then there has been no other information about the process to obtain these loans.

For the latest regulatory changes and other information on keeping your organization running through disruption, visit our COVID-19 Resource Center.

April 27, 2020

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