Commercial Cannabis Fees and Tax Rates

Commercial Cannabis Permit Fees 

Commercial Cannabis Permit ItemFee
Phase One Application Fee - Due at time of application
(background check, zoning clearance)		$4,750
Phase Two Application Fee - Due at time of application
(deposit for time and materials) 		$10,000
$20,000 (if over 10,000 square feet)
$20,000 (retail use)
Annual Commercial Cannabis Permit Fee$21,740

Cannabis Business Tax Rates 

Cannabis Business Tax Rates range from 2.5% 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%
Distribution6%
Microbusiness4%
Manufacturing4%
Cultivation2.5%
Testing Labs2.5%

  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.