---
title: Retail | Excise Tax Explained
description: Cannabis Retailers &quot;in select states&quot; must collect an excise tax from their customers.
---

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# Retail | Excise Tax Explained

## Cannabis Retailers "in select states" must collect an excise tax from their customers.

#### **[Please consult with your Tax Professionals when configuring BLAZE to your specific needs.](https://support.blaze.me/hc/en-us/articles/retail-excise-tax-explained#Always)**

#### Here is a list of states that currently have excise taxes as a part of their taxes:

**These settings were only effective through December 31, 2022.**  New Excise Tax settings were effective on January 1, 2023.  For California Excise Tax setting see [this](https://support.blaze.me/hc/en-us/articles/california-tax-options-set-up?hsLang=en) document.

For all other states, see [this](https://support.blaze.me/hc/en-us/articles/retail-setting-up-and-managing-tax-options-2023?hsLang=en) document.

- California
- Colorado
- Michigan
- Alaska
- Massachusetts
- Hawaii
- Missouri
- Nevada
- New York
- Oklahoma
- Pennsylvania
- Washington

#### If you have the "Excise Taxes" enabled, BLAZE will calculate these values for you based on your specific state's regulations.  These calculations can be found in a few different places:

- Purchase Orders
- Receive Metrc Transfers
- Batch Details
- Transaction Details

#### As operators, you can include these taxes in your listed "Retail Price" or not. Turning on the setting "\[Default\] Price includes excise tax" will be auto-enabled for all newly created products. You will want to confirm that this setting is also "enabled" through the individual products' profile. If this setting is enabled, your excise tax calculation will be displayed in parenthesis "(x.xx)."

#### Depending on your preferences/settings with including the taxes, you might need to visit the "Manage Receipts" section in your Current Shop Settings.

**NOTE:** The **Includes Excise Tax** setting in the **Tax Options** will only pertain to shops in **California**. 

![Excise\_Article](https://support.blaze.me/hs-fs/hubfs/Excise_Article.png?width=688&height=349&name=Excise_Article.png)

Within **California** shops, products that are non-arms length (NAL) can either calculate to include city taxes within the NAL excise tax calculations **OR** calculate NAL excise taxes only on the subtotal via the **Calculate Non-Arms Length tax after City tax** setting (Global Settings \> Tax Options).

**Enabling** this setting will calculate your NAL product's taxes in this order: 

- City \> **NAL Excise** \> County \> State \> Federal

- **NOTE:** This is if the "tax option" is set to "complex"

**OR**

- City \> **NAL Excise** \> State \> Federal

**NOTE:** This is if the "tax option" is set to "regular"

**Disabling** this setting will calculate your NAL product's taxes in this order: 

- **NAL Excise \>** City \> County \> State \> Federal

**NOTE:** This is if the "tax option" is set to "complex"

**OR**

- **NAL Excise \>** City\> State \> Federal

**NOTE:** This is if the "tax option" is set to "regular"

![Taxarticle\_ (2)](https://support.blaze.me/hs-fs/hubfs/Taxarticle_%20(2).png?width=688&height=332&name=Taxarticle_%20(2).png)

**NOTE:** For **California** shops, if **Calculate Non-Arms Length tax after City tax** is **enabled**, **City Taxes** MUST match the settings from within the product profile of NAL products. 

**EX:** If your NAL product is set to:

- **Price Includes Excise** is set to **yes (pre-tax)**, then the **City tax's** tax order must also be set to **pre-tax** (Global Settings \> Tax Options).
- **Price Includes Excise** is set to **no (post-tax)**, then the **City Tax's** tax order must also be set to **post-tax** (Global Settings \> Tax Options).
- These settings must only match when the **Calculate Non-Arms Length tax after City tax** setting is **Enabled.** If the **Calculate Non-Arms Length tax after City tax** setting is **Disabled**, then these setting will not need to align.

#### **\*\*\*Always consult a Professional / CPA / Attorney, before setting / changing your taxes \*\*\***

BLAZE® is a complex and sophisticated SaaS platform that provides a series of individual tax settings for each client customer, subject to the advice of their tax advisor professional that enables the client customer to comply with local, state, and national governmental tax schemes. YOU ARE SOLELY RESPONSIBLE FOR YOUR TAX SETTINGS. TAX RATES, NAMING CONVENTIONS AND THE ORDER OF OPERATION FOR THOSE RATES VARY BY JURISDICTION AND ARE SUBJECT TO CHANGE. YOU AND YOUR TAX PROFESSIONAL ARE RESPONSIBLE FOR REVIEWING, UPDATING, AND APPLYING THE SPECIFIC TAX SETTINGS, RATES AND THE ORDER OF OPERATION FOR YOUR SERVICE AREA(S). THE COLLECTION, RETENTION, AND PAYMENT OF APPLICABLE TAX LIABILITIES TO APPROPRIATE AUTHORITIES IS YOUR SOLE RESPONSIBILITY. BLAZE® MAKES NO WARRANTY NOR REPRESENTATION THE TAX SETTINGS, RATES AND THE ORDER OF OPERATION YOU SELECT ARE APPROPRIATE AND CORRECT. YOU EXPRESSLY AGREE BLAZE® SHALL NOT HAVE ANY LIABILITY FOR UNDER OR OVERCOLLECTION OF YOUR TAX LIABILITIES BASED UPON THE SETTINGS YOU SELECT.

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