Nevada County Cannabis Tax Resource Guide 2025-2026
- Erin McMichael
- May 20
- 2 min read
Nevada County Cannabis Tax Resource Guide
Reporting and paying tax is a required and integral part of the Nevada County commercial cannabis industry. The taxes received cover the costs for the local cannabis program to operate. All cannabis taxes are subject to significant penalties and interest resulting from non-compliance. Failure to comply with regulations may also result in the loss of a county permit. For more information on local requirements, refer to Ordinance 2523. For more
information on state requirements, refer to the Medicinal and Adult-Use Cannabis Regulation and Safety Act.
♦ Annual Registration
♦ Cultivation Tax
♦ Quarterly Tax Returns
Annual Registration
Cannabis businesses need to register with the Nevada County Tax Collectors Office each year.
The Tax Collectors Office operates on a fiscal year (July 1st – June 30th)
Registration forms are due upon receiving a state license and/or county permit and annually thereafter by July 31st.
Once registered with the Tax Collectors department, tax bills for the fiscal year and a Cannabis Business Tax Certificate will be issued. This certificate is a required posting for each local cannabis business.
Cultivation Tax versus Quarterly Receipts Tax
Cultivation Tax
All cannabis businesses with a cultivation license are taxed based on the square footage of their grow cycle(s), number of grow cycles, and license light type.
Outdoor and mixed light – tier 1 cultivation is taxed at a rate of $0.17/square foot
Indoor and mixed light – tier 2 cultivation is taxed at a rate of $0.34/square foot
Two invoices will be issued after registration, each for half of the fiscal year’s total tax amount: the first due January 12th, and the second due June 12th.
Quarterly Tax Returns
Cannabis businesses operating with non-cultivation licenses, such as nurseries, processors, or microbusinesses are required to submit quarterly returns of gross receipts earned. Quarterly returns are taxed at a rate of 2.81%.
Quarterly tax returns must be submitted by the due date each quarter, even if no sales occur.
If sales do occur, then payment in full must also be submitted.
An additional 30 days to report and submit forms and payment is allowed so that all receipts for the quarter can be accounted for.
Additionally, businesses reporting and paying quarterly have a minimum annual tax amount that must be met ($2500.00). If this minimum has not been met through quarterly payments, a true-up invoice will be issued at the end of the fiscal year for the remaining balance. This balance must be paid by the due date to avoid penalties and interest.
Penalties and Interest on Delinquent Taxes
In accordance with Ordinance 2523, taxes left unpaid after a due date will accrue penalties and interest until full payment is received.
Important Dates
July 1st | Fiscal year begins |
July 31st | Annual registration due |
July 31st | Fourth quarter (April 1st – June 30th) tax return and payment due |
October 31st | First quarter (July 1st – September 30th) tax return and payment due |
January 12th | First cultivation tax installment due |
January 31st | Second quarter (October 1st – December 31st) tax return and payment due |
April 30th | Third quarter (January 1st – March 31st) tax return and payment due |
June 12th | Second cultivation tax installment due |
June 12th | Last day to report changes on registration |
June 30th | Fiscal year ends |
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