On November 27, 2023, the California Department of Tax and Fee Administration proposed Emergency Regulation 3802 for immediate adoption to address issues identified by the Department related to calculating “gross receipts” for purposes of applying California’s 15% cannabis excise tax. To take immediate effect, the Department adopted Regulation 3802 to address: (1) the issue regarding how the cannabis excise tax applies to charges for other tangible personal property purchased with cannabis or cannabis products in a retail sale; (2) the confusion about determining whether charges for cannabis accessories, including packaging, are included in gross receipts; and (3) the issues regarding whether cannabis retailers’ charges for services and transportation are included in their gross receipts. The Department’s adoption of this emergency regulation follows a discussion paper published by the Department on October 2, 2023, and an interested parties meeting hosted by the Department on October 12, 2023.