Glossary
Cannabis excise tax
A state tax on cannabis retail sales, separate from sales or gross receipts tax. Rates and bases vary: California 15% on retail; New Mexico 14% from July 1, 2026 rising to 18% by 2030; Michigan 10% retail excise plus, from January 2026, a 24% wholesale tax.
Why it matters for reconciliation: excise is a separate line from sales or gross receipts tax, and the state receipt wants each tax in its own field. A POS that sends one combined tax value will never match the receipt.
Example: in California a retail sale carries a 15% excise, in New Mexico 14% from July 1, 2026, and in Michigan a 10% retail excise. The daily match compares each tax field separately, so a total that is off by a few cents points to one specific line.
Where this comes up on budally.com
- Metrc in California: what a dispensary has to report, reconcile and keep — the operations view
- NMS2S explained: New Mexico's seed-to-sale system, what its API does, and what your store still has to do by hand
- Compliance invoicing & accounting
- Michigan's 24% wholesale marijuana tax: book it in cost, never on the receipt
- The dispensary month-end close: a checklist that reconciles to Metrc before anything posts
Related terms
- Out-the-door (OTD) price
The shelf price plus all taxes the customer pays. BudAlly compares prices OTD using the state's tax formula (e.g. CA shelf × 1.15 × (1 + local rate); MI shelf × 1.16), because competitors display prices on different tax bases.
- Wholesale tax (Michigan)
Michigan's 24% tax on wholesale cannabis transfers from January 1, 2026. On a retailer's books it belongs inside purchase cost (inventory), never as a retail tax line; the wholesaler remains liable.
- Gross receipts tax (GRT)
New Mexico's sales-type tax on business receipts, state plus local rate by location code. Applies to cannabis retail; medical sales are deductible and reported separately (code D0-034).
Terms that refer here
Gross receipts tax (GRT),Out-the-door (OTD) price,Wholesale tax (Michigan)