Taxes

Why do you have taxes when other Shops do not?

Taxes are applied by the state of California and the local city government.  All legal dispensary pay taxes and pass the charge to the consumer, although many of them “include” the taxes in the price displayed to the consumer.  Harborside believes in transparency and we want our customers to know what portion of the cost is going to taxes. In addition, you may qualify for lower taxes if you have a valid medical recommendation or a state-issued medical-cannabis ID card. Please read How do Taxes work for more information.

How do Taxes work?

There are three different taxes applied to purchases of cannabis in the State of California:

1. Excise Tax 15%

The state of California imposes a 15% excise tax on all cannabis products. There is no exceptions to this tax.

2. City Taxes 5-10%

Oakland

The City of Oakland imposes a 10% tax on adult-sales Cannabis products. If the consumer has a valid medical recommendation for cannabis, the Oakland City tax is only 5%.

San Jose

The City of San Jose imposes a 10% sales tax for medical and adult-use customers.

Delivery

Delivery customers pay the city tax that is associated to the city to which we are delivering

3. CA Sales Tax (8-10%)

California Sales Tax varies from city to city. Each municipality can add local taxes to the standard 9.25%, and the taxapplied varies on the place of transaction, therefore delivery customers may pay a slightly different sales tax rate based on the location of the delivery. In addition, customers who have a state-issued Medical Cannabis Patient Identification card (Issued by the Department of Health Services), do not have pay sales tax on Medical Cannabis products (although the Excise tax, and the City tax still apply).