Taxnexus Enables Cannabis Taxpayers with Automated Tax Compliance Solution.

With the new wave of cannabis legalization, not only do cannabis businesses (aka “taxpayers”) have to comply with stringent product regulations, but also with complicated tax laws. The complexity of taxes is especially felt by cannabis taxpayers in states like California where the state regulators have not placed a standard for localities for implementing cannabis tax rules and regulations.

In the absence of a statewide standard, local jurisdictions have enacted a plethora of cannabis business taxes that vary widely in rates and types. Based on a Taxnexus research into California cannabis tax laws, there are currently close to 500 different taxes in city and county ordinances. This number will continue to grow as more local jurisdictions legalize cannabis-related activities and enact new taxes to bring in the much sought-after tax dollars.

Given the multiple layers of evolving tax laws, cannabis businesses are struggling to stay compliant — whether it is figuring out accurate tax rates applicable to them, using the correct computation methods, timely filing tax returns with multiple jurisdictions, or any other tax-related requirement. Such failure to comply is met with heavy penalties. Some California local jurisdictions charge as high as 100% of the taxes owed as penalty on top of the actual taxes owed.

Some cannabis businesses have resorted to expensive in-house accounting professionals, some try to do the taxes themselves, which is rife with human error, while some have simply given up. There has been no comprehensive cannabis tax compliance solution in the space, until now.

Taxnexus is the first and only automated Transaction-to-Treasury cannabis tax compliance solution for the entire cannabis product chain. Through its sophisticated API, Taxnexus offers a suite of products that enable cannabis taxpayers to comply with all state and local tax regimens in the United States and Canada.

Taxnexus Situs delivers all cannabis tax rates applicable to a location when a taxpayer simply enters an address or the name of a city, county, or dispensary. With census-block-level accuracy and up-to-date tax data, taxpayers no longer have to worry about applying incorrect tax rates to their transactions. Taxpayers can now access Taxnexus Situs for free at local.taxnexus.net.

Taxnexus Base calculates applicable cannabis taxes to invoices, and stores cannabis excise and sales tax data in the cloud in compliance with record-keeping requirements. Using the data stored in Taxnexus Base, Taxnexus Returns generates official government tax filing documents, and timely files tax returns with all appropriate jurisdictions on behalf of the cannabis taxpayer.

Taxpayers will soon be able to use Taxnexus products through participating cannabis POS and ERP software. They can ask their POS company about adding Taxnexus to their seed-to-sale solution if they are interested in taking advantage of Taxnexus solutions. Join the Taxnexus Priority Waitlist today.