Commercial Cannabis Fees and Tax Rates

Commercial Cannabis Permit Fees 

Commercial Cannabis Permit ItemFee
Combined Application Fee - includes Phase One (zoning clearance) and Phase Two (deposit for time and materials) - Due at time of application
$6,380
Annual Commercial Cannabis Permit Fee$18,732

Cannabis Business Tax Rates 

Cannabis Business Tax Rates range from 1% to 8% of all gross receipts of those engaged in cannabis business within the City of Modesto. 

Cannabis Business TypeTax Rate/Percentage of Gross Receipts
Retail (Storefront and Delivery)8%
Distribution2.5%
Microbusiness (Retail)8%
Microbusiness (Manufacturing-Wholesale)4%
Microbusiness (Cultivation-Wholesale)2.5%
Manufacturing4%
Cultivation (Nursery)1%
Cultivation (Indoor Only)2.5%
Testing Labs1.5%

  1. The City implemented a 2.4% Service Fee for all credit card payments effective September 1, 2017.  Persons paying in person or online will be charged this fee for most payments collected.

    You will not be charged this fee when paying for a utility service with the City of Modesto.