Donated Medicinal Cannabis is Exempt from Certain Taxes

Beginning March 1, cannabis retailers may donate free medicinal cannabis or medicinal cannabis products to medicinal cannabis patients, or cannabis licensees may donate free medicinal cannabis to cannabis retailers for subsequent donation to medicinal cannabis patients, without payment of certain taxes:

• The cultivation tax will not apply to medicinal cannabis when the cultivator designates for donation in the California Cannabis Track-and-Trace system.
• The cannabis excise tax does not apply when a cannabis retailer donates free medicinal cannabis to a medicinal cannabis patient.
• The use tax will not apply when a cannabis retailer donates free medicinal cannabis to a medicinal cannabis patient, or when another licensee, such as a distributor or manufacturer, donates free medicinal cannabis to a retailer for subsequent donation to a medicinal cannabis patient.

Learn more here.