Report: Over 13% of California Cannabis Retailers Missed Tax Deadline

The California debt bubble continues to grow.

More than 13% of California’s legal cannabis retailers, or about 265 storefronts, missed a tax payment deadline of May 1 and are facing hefty fines, SFGate reported this week.

The California Department of Tax and Fee Administration told the news outlet that’s how many marijuana retailers are delinquent in remitting cannabis taxes, and now those businesses face penalties of up to 50% on taxes that are paid late.

The number of delinquencies is almost sure to rise as well, since the agency told SFGate it’s still processing tax returns.

A debt bubble has been slowly growing for the California cannabis supply chain, with some estimating it at upwards of $600 million. The CDTFA disclosed in December that the industry as a whole already at the time had a ballooning $250 million tax bill.

Cannabis industry attorney Michelle Mabugat told SFGate she expects a lot of California companies to go under this year as a result of the widespread financial distress.

“I do anticipate a lot of retailers going out of business this year, just like we saw a lot of cultivators go out of business last year,” Mabugat said.

John Schroyer

John Schroyer has been a reporter since 2006, initially with a focus on politics, and covered the 2012 Colorado campaign to legalize marijuana. He has written about the cannabis industry specifically since 2014, after being on hand for the first-ever legal cannabis sales on New Year’s Day that year in Denver. John has covered subsequent marijuana market launches in California and Illinois, has written about every aspect of the marijuana trade, and was part of the team that built the cannabis industry’s first-ever trade show, MJBizCon. He joined Green Market Report in 2022.


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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