Commercial Cannabis Fees and Tax Rates

Commercial Cannabis Fees 

Commercial Cannabis Permit Item
Fee
Application Fee Deposit (deposit for time and materials) – Due at time of application 
$6,380
Annual Commercial Cannabis Permit Fee for Operational Businesses
$22,821
Annual Commercial Cannabis Permit Fee for Non-Operational Businesses
$3,991
Change in Ownership Deposit (deposit for time and materials) - Due at time of request
$2,000
Change in Location Deposit (deposit for time and materials) - Due at time of request
$5,000

Cannabis Business Tax Rates 

Cannabis Business Tax Rates range from 1% to 8% of all gross receipts of those engaged in cannabis business within the City of Modesto. 

Cannabis Business TypeTax Rate/Percentage of Gross Receipts
Retail (Storefront and Delivery)8%
Distribution2.5%
Microbusiness (Retail)8%
Microbusiness (Manufacturing-Wholesale)4%
Microbusiness (Cultivation-Wholesale)2.5%
Manufacturing4%
Cultivation (Nursery)1%
Cultivation (Indoor Only)2.5%
Testing Labs1.5%

  1. The City implemented a 2.4% Service Fee for all credit card payments effective September 1, 2017.  Persons paying in person or online will be charged this fee for most payments collected.

    You will not be charged this fee when paying for a utility service with the City of Modesto.