California's Adult-Use Marijuana Sales Drop to Nine-Quarter Low

Dec.15.2022
California's Adult-Use Marijuana Sales Drop to Nine-Quarter Low
California's adult-use marijuana retail market sees first decline since commercial sales began in 2018.

For the first time since California launched commercial sales in 2018, the adult-use marijuana retail market has experienced a dip.


According to data released on November 18 by the California Department of Tax and Fee Administration, pharmacies with national licenses reported taxable sales of $1.27 billion in Q3 2022 for adult use, marking a nine-quarter low since Q2 2020 (CDTFA).


Editor's note: "Taxable sales amount" includes revenue from marijuana sales, sales of marijuana products, and other tangible personal property retail reported on sales and use tax returns.


As of the third quarter of this year, California retailers reported taxable adult use sales just over $4 billion, a decline of 7.5% compared to the first three quarters of 2021. However, the taxable sales figures provided by CDTFA are unstable and subject to changes based on amended and delayed declaration forms, as well as adjustments made to other tax declaration forms.


For example, when officials from the California Department of Tax and Fee Administration (CDTFA) initially reported the complete data for 2021, the taxable sales amounted to $5.2 billion. Since then, CDTFA officials have adjusted the 2021 data to reflect taxable sales of nearly $5.8 billion - over $568,000 in sales that had not been previously reported.


In the third quarter of 2022, adult use sales generated approximately $242 million in tax revenue, including $128.4 million in excise tax and $113.6 million in sales tax. California's total tax revenue has now declined for five consecutive quarters, but the most recent quarter marked the first time that the state's cultivation tax fell to $0, following legislation that terminated the previous tax rate of $161 per pound levied on licensed cultivators.


According to data from the California Department of Tax and Fee Administration (CDTFA), the reported total marijuana tax revenue does not include uncollected returns and does not include local taxes collected by cities and counties.


As of the third quarter, sales of adult use brought in nearly $853 million in revenue for the state government in 2022, a decrease of 17.2% compared to the first three quarters of last year.


Based on current data, adult-use cannabis retailers in California have sold nearly $19.3 billion worth of cannabis and related products since commercial sales began in 2018. So far, the state has collected a total of $4.4 billion in adult-use cannabis taxes, which includes $2.2 billion in cannabis excise taxes, $1.7 billion in sales taxes, and $500 million in cultivation taxes that will be repealed on July 1, 2022, according to data from the California Department of Tax and Fee Administration (CDTFA).



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

ZYN ULTRA Expands Haypp’s U.S. E-Commerce Lineup With 9 mg Pouches
ZYN ULTRA Expands Haypp’s U.S. E-Commerce Lineup With 9 mg Pouches
Haypp Group said ZYN ULTRA became available nationwide in the United States on June 15 through its e-commerce platforms Nicokick.com and Northerner.com for verified adult nicotine consumers.
Jun.17
FDA Expands ENDS Market Access With First Authorization of Non-Tobacco and Non-Menthol Products
FDA Expands ENDS Market Access With First Authorization of Non-Tobacco and Non-Menthol Products
The U.S. Food and Drug Administration (FDA) announced on May 5, 2026 that it authorized the marketing of four Glas electronic nicotine delivery system (ENDS) products through the premarket tobacco product application (PMTA) pathway. The authorized products are Classic Menthol, Fresh Menthol, Gold and Sapphire pods, each containing 50mg/ml, or 5%, tobacco-derived nicotine.
May.06 by 2FIRSTS.ai
ATF Cancels Webloc Contract, Raising Questions Over Commercial Location Data in Enforcement
ATF Cancels Webloc Contract, Raising Questions Over Commercial Location Data in Enforcement
The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has stopped using Webloc, a commercial phone-tracking tool, after lawmakers, a prosecutor and a judge raised legal and privacy concerns over warrantless use of ad-tech location data, a development that may affect data-use boundaries in U.S. enforcement against illicit tobacco, nicotine products and cross-border distribution networks.
Jun.29
India Seizes $14 Million Worth of Illegal Vaping Products Imported From China
India Seizes $14 Million Worth of Illegal Vaping Products Imported From China
India’s Directorate of Revenue Intelligence (DRI) seized approximately 300,000 illegal e-cigarettes and vaping devices worth more than ₹120 crore (approximately $14 million) during coordinated multi-state enforcement operations.
Regulations
May.22
U.S. Military Nicotine Policy Sparks Debate as Nicotine Pouches Enter Discussion
U.S. Military Nicotine Policy Sparks Debate as Nicotine Pouches Enter Discussion
An opinion article published by Stars and Stripes argued that the Pentagon’s January nicotine clinical guidelines overemphasize abstinence, fail to reflect the reality that about 30% of active-duty personnel use nicotine, and do not address nicotine pouches as potential harm-reduction products.
Industry Insight
Jun.08
One Nation Proposes 50% Tobacco Excise Cut as Australia’s Illicit Market Expands
One Nation Proposes 50% Tobacco Excise Cut as Australia’s Illicit Market Expands
Australian One Nation leader Pauline Hanson has proposed cutting tobacco excise by 50% and freezing indexation until June 30, 2028, in a bid to lower legal cigarette prices and reduce the price advantage of the illicit tobacco market.
Jun.18