Cannabis Business Tax

Vista voters passed Measure AA, City Council Cannabis Business Tax, at the November 6, 2018, General Election, with 52.64% of voters voting in favor of the measure.  The measure imposes a general tax on potential future cannabis businesses to offset their community impacts by taxing marijuana cultivation starting at $14/square foot, adjusted annually by CPI; and gross receipts of marijuana businesses at rates not exceeding 8% on manufacturing and distribution; 10% on medicinal retail; 12% on adult-use retail; and 3.5% on testing.  Measure AA enacted Vista Municipal Code Chapter 7.10.

On June 22, 2021, the City Council adopted an ordinance which enacted Vista Municipal Code Chapter 5.95, Commercial Adult Use Cannabis Businesses, allowing medical cannabis retailers to co-locate adult use cannabis at their existing site and establishing the tax rate on adult-use retail to match the tax rate on medical retail. 

The current general tax for authorized businesses is as follows:

Manufacturing: 4% of gross receipts

Distribution: 2% of gross receipts

Testing: 1% of gross receipts

Medical Retail (including delivery):  7% of gross receipts*
*established by the passing of Measure Z, which implemented VMC Chapter 5.94

Adult-use Retail (applies to co-located businesses and deliveries made in Vista from outside businesses):  7% of gross receipts

In addition to the general tax identified above, businesses must pay all other applicable local, state, and federal taxes.

 VMC 7.10 Cannabis Business Tax

Pursuant to Section 7.10.030 of the Vista Municipal Code, the Cannabis Business Tax is imposed on a fiscal year basis.  The tax is due and payable as follows:

1. Each person owning a Cannabis Business shall, on or before the last City of Vista business day of the month, prepare and submit a monthly tax statement on this form and remit to the Tax Administrator the tax due. The tax due shall be no less than the monthly installment due.
2. Cash tax payments may only be made by appointment, which should be scheduled at least two City of Vista business days in advance by contacting Finance Department staff at (760) 639-6174.  No cash payments will be accepted on a walk-in basis. A Cash Tax Remittance Agreement Acknowledgement must be on file or accompany the cash payment. Checks may be mailed, but must be postmarked by the due date. 
3. Tax statements and payments for all outstanding taxes owed to the City are immediately due to the Tax Administrator upon cessation of business for any reason.

2024-2025 Cannabis Tax Remittance Schedule

2024-2025 Cannabis Business Tax Remittance Form (Fillable)

2024-2025 Cannabis Business Tax Remittance Form

2024-2025 Cannabis Tax Remittance Filing System and Agreement

Cannabis Tax Dollars At Work

The City allocates $4 million in cannabis tax revenue to the General Fund each year.  General fund expenditures include essential services and operational needs such as public safety, general government, community services, public works, and community development.  Cannabis tax revenue in excess of this is allocated to special projects by the City Council during a year-end revenue discussion. Projects have included support for the Safe Parking Program, increased lighting in neighborhoods, and the purchase and distribution of bike helmets and gun locks. Funds are currently used for additional law enforcement and park rangers, park restroom maintenance, and scholarships for young people. Over $1 million dollars in scholarships have been awarded as of August 2024.