2023 California Cannabis Regulatory Updates: What Dispensaries Need to Know

Disclaimer: This content is provided for informational purposes only and is not intended as legal advice. You are responsible for your own compliance with laws and regulations.

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To educate retailers on compliance changes in the California cannabis market, the Dutchie team hosted a webinar in partnership with Lindsay Robinson, Executive Director of the California Cannabis Industry Association (CCIA) and Eric Schlissel, CEO of Cure8. Click here to watch the complete on-demand recording.

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With the start of a new year, cannabis dispensaries across California are adjusting their business models to meet changing laws and regulations that could affect their sales and operations. Let's explore how these changes might affect your business.

Must-know 2023 cannabis regulatory updates for California dispensaries

1. Cannabis excise tax changes

First are changes to the cannabis excise tax. The collection of a 15% excise tax and payment to the state’s Department of Tax and Fee Administration has shifted from cannabis distributors to retailers.

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While this simplifies California taxes in the long run, it does leave lingering issues for retailers to deal with, including:

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• Reordering taxes. For most dispensaries, this means the compounding order of their taxes has changed. CDTFA guidance states that the excise taxed value should include local cannabis taxes, which is a change for most.
• Repricing products. Many dispensaries are also refactoring their pricing. Before, the excise tax was commonly included in the base price of items. Since this is no longer possible, many dispensaries will want to reduce their base pricing by roughly the same amount.
• Tax credit. Cannabis goods purchased by retailers before 2023 will have had excise paid to the distributor already, but are still required to have the retail sale taxes collected at the register. California allows retailers to request the amount of excise tax previously paid on these sales as a tax credit. 

Dutchie POS has released a report that helps dispensaries calculate this value on their monthly sales.

2. Cannabis delivery changes

Cannabis delivery vehicles can now carry up to $10,000 of product, doubling the previous amount—and curbside delivery is now allowed at all licensed retailers.

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California and METRC are also implementing new endpoints that allow track-and-trace systems to track the state's unique delivery model. Most notably, delivery sales will be tracked as a unique event and vehicle inventories will be represented in METRC.

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The deadline is April 1, 2023. Dispensaries do not need to utilize the METRC endpoints until then, provided they're tracking the required data through other means.  

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Dutchie POS will be updating all workflows to adhere to the new tracking requirements and API endpoints before the April deadline.

More resources for California dispensaries

• What are the most secure forms of payment for California dispensaries?
• How California dispensaries can boost customer retention & brand loyalty
• Customer acquisition strategies for California dispensaries
• How to prevent budtender turnover at your dispensary
• Switching cannabis POS systems: a guide for dispensaries

About Dutchie

Dutchie is an all-in-one technology platform powering the cannabis industry with Point of Sale, Ecommerce, Payments, and Insurance. Through our technology, we’re helping cannabis businesses start, operate, and grow with confidence. With software that simplifies their operations, our customers can focus on what matters most—bringing the benefits of cannabis safely to consumers.