Leafly can calculate and display estimated taxes on orders based on each retailers’ local applicable taxes and rates. Because cannabis taxes can be significant, and vary widely by location, and customers may often not know what taxes to expect when purchasing cannabis. Providing Leafly tax estimates can help customers better understand the total purchase price before placing their pickup/delivery order and increase customer confidence on Leafly. Additionally, tax estimates can avoid customers being surprised with additional fees when paying and reduce order cancellations and modifications.
- Choosing your option for handling tax estimates on Leafly orders
- Know your applicable taxes and rates for your store
- Specify your tax settings for Leafly
- Settings for Dual License enabled dispensaries
Choose your preference for displaying tax and tax-related information
Retailers can set their preference for calculating and displaying tax estimates with these options:
- Taxes are ‘calculated at payment’ - You can choose to not display tax estimates, but message in Leafly checkout that taxes will be ‘calculated at payment.’ In other words, taxes will be added by your point of sale (POS) when the customer pays for the order at pick-up or upon delivery. This is the default option and no action is required to set this preference.
- Taxes are ‘included in pricing’ - If your menu pricing already includes the applicable taxes (post tax pricing), select this option. Taxes will not be calculated and added to the order, but messaging in Leafly bag and checkout will show that taxes are included in the order total.
- Display tax estimates for your rec-use or med-use menu to display when customers order from your Leafly Menu. Medical use and Recreational use taxes are often different. If you use your Leafly menu exclusively for either type, you can specify the applicable taxes and rates to be calculated and displayed in Leafly checkout.
- Display tax estimates for dual license (med- or rec-use) menu to display based on the type of customer order. If you are a dual licensed dispensary, and use your Leafly menu for both medical and recreational-use orders, select this option. To access this tax setup option, your Leafly storefront must first be enabled for “dual menu.” To enable the ‘dual menu’ capabilities for your storefront, contact leafly through this form.
Know your applicable taxes and rates for your store
The types of taxes applied to cannabis orders, and the specific tax rates for each vary widely by state, local municipality, med vs rec use, and product classification. That said, setting up Leafly tax estimates is quite simple. However, to display the most accurate estimates, it is important to first understand the what taxes apply to your store. Pro tip: To find the specific taxes and rates that apply to your location and business, look here:
- Your Point of Sale (POS) system - Assuming your store is already open for business, taxes should be already setup in your point of sales system in your store. If you, or a colleague can access those tax settings, you should find all the information you need.
- This Leafly article summarizes the tax rates for each state and links to relevant government websites with more details.
- If you are having trouble identifying your applicable taxes and rates, contact leafly support for help.
Here’s the specific tax information you need to know, in order to set up tax estimates on Leafly.
- Total ‘Sales tax’ rate - Sales tax is a total of both state and local sales taxes. For example New York sales tax for rec-use orders is 13%, which includes a 9% state sales tax + a 4% local sales tax. Keep in mind that sales tax rates are often different for medical and recreational use cannabis orders.
- Excise tax rates - These are taxes that your state and/or local municipality applies to cannabis products. This tax is typically not applied to accessories and other non-infused products. Again, these rates may not apply or may be different for medical and recreational use cannabis orders.
- Additional taxes - Some states or local municipalities require dispensaries apply other taxes for cannabis orders. These taxes have various names such as Marijuana Business Tax(MBT), Usage fees, Privilege fees, etc. If these apply to your business, “Additional taxes” can be used display estimates for your rec and/or med-use orders.
Entering your tax settings on Leafly
**Note** - If you have a Dual License dispensary and want to use your Leafly menu for taking both med and rec-use orders (and displaying the corresponding tax estimates) then contact Leafly here to help set that up for you.
- Go to the ‘Taxes’ settings page in Menu Manager
- Menu Manager > Settings > Taxes
- Select your tax option
- Enter your tax rates (3rd and 4th options only)
Enable the taxes your want to estimate and enter your local rates.
Note: Entering 0% does not disable that tax from displaying, but calculates the estimate using that 0% rate and displays it to the customer as $0.00.
- Save your settings by clicking 'save now'
Settings for Dual License enabled dispensaries
If you are a Dual License dispensary, and Leafly has ‘dual license’ enabled your menu to accept both med and rec-use orders, you will have the ability to set both med and rec-use tax rates.