On November 6, 2018, Redwood City voters passed Measure DD, Cannabis Business Tax, which imposes a gross receipts tax on cannabis businesses that operate or provide services within the City of Redwood City. The Cannabis Business Tax Ordinance Redwood City Municipal Code (RCMC) Chapter 32, Article XI became effective, and the assessment of the tax began on January 1, 2019.
The Cannabis Business Tax applies to City approved cannabis business activities:
- 2.5% of gross receipts for Cannabis Nursery Businesses;
- 4.0% of gross receipts for Cannabis Retail Business Sales; this applies to all cannabis retailers operating in the City whether their business is located in Redwood City or outside of Redwood City.
Each Business is required to remit monthly the full amount of taxes owed based on previous month activity. Along with payment of taxes, businesses must file a Cannabis Business Tax Remittance Form, even if no tax is due. Filings are due on or before the last day of the month following the reporting month. In the event the last day of the month falls on a weekend or City holiday, the due date shall be the next regular business day.
Cash remittances may require an appointment. For questions or to request an appointment, please call 650-780-7213 or email email@example.com.
Check, cashier's check, money order, and cash are the preferred methods of payment for Cannabis Business Tax.
A penalty of 10% of the amount of the tax owed plus interest of 1% will be assessed for taxes not paid by the due date. Unpaid taxes outstanding for a period exceeding one calendar month beyond the due date will be assessed an additional 25% penalty plus interest of 1% per month.
The payment of the Cannabis Business Tax shall in no way be construed as authorizing the continuance of any illegal business. Person may not lawfully engage in cannabis business activities without first obtaining required City and state permits and licenses.