Bill Text: CA SBX616 | 2009-2010 | Regular Session | Introduced
Bill Title: Taxation: marijuana.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-06-22 - Set, first hearing. Hearing canceled at the request of author. [SBX616 Detail]
Download: California-2009-SBX616-Introduced.html
BILL NUMBER: SBX6 16 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Calderon
APRIL 6, 2010
An act to add Part 13.3 (commencing with Section 31001) to
Division 2 of, and to add and repeal Section 31006 of, the Revenue
and Taxation Code, relating to taxation, to take effect immediately,
tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 16, as introduced, Calderon. Taxation: marijuana.
Existing law provides for the imposition of various taxes within
the state, including taxes upon the distribution of cigarettes and
tobacco products.
This bill would, commencing on and after the first day of the
first calendar quarter commencing more than 90 days on or after the
effective date of the bill, impose a tax on the distribution, as
defined, of medical marijuana, as defined, at a rate that is
equivalent to that imposed upon tobacco products under the Cigarette
and Tobacco Products Tax Law and would require the taxes to be
administered in accordance with the provisions of the Fee Collection
Procedures Law, as provided. The revenues collected from the tax
would be deposited in the Cannabis Tax Account, which would be
created by the measure. This bill would also require the State Board
of Equalization, in consultation with the California Health and Human
Services Agency, to report on the impact of taxation of the
distribution of medical marijuana within the state.
Because this bill would expand the application of the provisions
of the Fee Collection Procedures Law, the violation of which is a
crime, it would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would result in a change in state taxes for the purpose
of increasing state revenues within the meaning of Section 3 of
Article XIII A of the California Constitution, and thus would require
for passage the approval of 2/3 of the membership of each house of
the Legislature.
This bill would take effect immediately as a tax levy, but its
operative date would depend on its effective date.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Part 13.3 (commencing with Section 31001) is added to
Division 2 of the Revenue and Taxation Code, to read:
PART 13.3. Cannabis Tax Law
31001. This part shall be known and may be cited as the Cannabis
Tax Law.
31002. For purposes of this part:
(a) "Cannabis" means all parts of the plant Cannabis sativa L.,
whether growing or not; the seeds thereof; the resin extracted from
any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or
resin. It does not include the mature stalks of the plant, fiber
produced from the stalks, oil, or cake made from the seeds of the
plant, any other compound, manufacture, salt, derivative, mixture, or
preparation of the mature stalks (except the resin extracted
therefrom), fiber, oil, or cake, or the sterilized seed of the plant
which is incapable of germination.
(b) "Distribution" or "distributes" means the sale in this state
of untaxed cannabis, other than the lawful sale of untaxed medical
marijuana to a collective or cooperative, as described in Article 2.5
(commencing with Section 11362.7) of Chapter 6 of Division 10 of the
Health and Safety Code.
(c) "Distributor" means every person who distributes cannabis.
(d) "Medical marijuana" means marijuana that is regulated under
Article 2.5 (commencing with Section 11362.7) of Chapter 6 of
Division 10 of the Health and Safety Code.
31003. There shall be imposed upon every distributor a tax upon
the distribution of cannabis at a rate equal to the tobacco products
tax rate, as determined pursuant to Part 13 (commencing with Section
30001), for cannabis distributed on and after the first day of the
first calendar quarter commencing more than 90 days after the
effective date of this part.
31004. The board shall administer this tax in accordance with the
Fee Collection Procedures Law (Part 30 (commencing with Section
55001)), or its successor statute, with such changes as to substitute
"cannabis" for "tobacco products," to the extent that Part 30, or
its successor statute, is not inconsistent with this part.
31005. All revenues, less refunds, derived from a tax imposed
pursuant to this part shall be transferred to the Cannabis Tax
Account, which is hereby created in the General Fund.
31006. (a) On or before six months from the operative date of
this bill, the board, in consultation with the California Health and
Human Services Agency, shall report on the effect of taxation on the
distribution of medical marijuana within the state.
(b) (1) The report to be submitted pursuant to subdivision (a)
shall be submitted in compliance with Section 9795 of the Government
Code.
(2) Pursuant to Section 10231.5 of the Government Code, this
section is repealed four calender years from the date upon which the
board makes its report to the Legislature.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
SEC. 3. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
However, the provisions of this act shall become operative on the
first day of the first calendar quarter commencing more than 90 days
after the effective date of this act.
