Commercial Cannabis Business Tax

"Gross receipts" means the total amount actually received or receivable from all sales; the total amount or compensation actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; discounts, rents, royalties, fees, commissions, dividends, and gains realized from trading in stocks or bonds, however designated. Included in "gross receipts" shall be all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever.

Remit the completed Commercial Cannabis Business Tax Remittance Form and payment for the preceding month's receipts to the City of Santa Barbara on or before the last calendar day of each month to avoid late fees. For mailed payments, the envelope must be postmarked by the United States Postal Service on or before the last calendar day of the month. Metered marks are not acceptable.

Payment is accepted in the form of cash, check, or money order. Make check payable to: City of Santa Barbara.

Mail the form and payment to the address above, or hand deliver to Santa Barbara City Hall.

Mail: 
City of Santa Barbara 
Accounts Receivable
P.O. Box 1990
Santa Barbara, CA 93102

In Person:
735 Anacapa Street
Santa Barbara, CA 93101

Failure or refusal to pay any cannabis business tax required shall pay the penalties equal to 25% of the amount of the tax in addition to the amount of the tax calculated from the due date. An additional penalty equal to 25% of the amount of the tax will be assessed if the tax remains unpaid for a period exceeding one calendar month beyond the due date.

The Accounts Receivable office may approve a waiver for one tax period’s (one month’s) late penalties and interest. This request must be submitted in writing and submitted to the Accounts Receivable office. Only one penalty waiver can be granted every 24-month period.

A City Business Tax is required pursuant to chapter 5.04 of the Santa Barbara Municipal Code. Business Tax Certificate fees are assessed annually (on a calendar year) and based on annual gross receipts for Cannabis Marijuana industries. Renew online by January 31st of each year at https://santabarbaraca.gov/business/business-taxes-assessments/business-tax-certificate-information. A Business Tax Certificate is not regulatory in nature and is not an approval or endorsement of compliance with other city ordinances or laws. Additional permits and permit fees are required for all cannabis industries.

Upon changes of business ownership or cessation of business operations, the business must notify the City in writing to AccountsReceivable@SantaBarbaraCA.gov and AMorales@santabarbaraca.gov.  When this occurs, all taxes, assessments, and fees become immediately due.