Bill Text: WV SB657 | 2022 | Regular Session | Introduced
Bill Title: Relating to tax on medical cannabis
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2022-02-16 - To Finance [SB657 Detail]
Download: West_Virginia-2022-SB657-Introduced.html
WEST virginia legislature
2022 regular session
Introduced
Senate Bill 657
By Senator Trump
[Introduced February
16, 2022; referred
to the Committee on Finance]
A BILL to amend and reenact §16A-9-1 of the Code of West Virginia, 1931, as amended, relating generally to medical cannabis; and authorizing the disclosure of tax information necessary for administration of the medical cannabis program.
Be it enacted by the Legislature of West Virginia:
article 9. tax on medical cannabis.
§16A-9-1. Tax on medical cannabis.
(a) Tax imposed. — For the privilege of engaging or continuing within this state in the business of a dispensary of medical cannabis, as defined in §16A-2-1 of this code, there is hereby levied upon and collected from every person exercising the privilege a privilege tax.
(b) Rate and measure of
tax. — The rate of tax imposed by this section shall be 10 percent of the
gross receipts the dispensary receives or accrues during the reporting period,
depending upon its method of accounting for federal income tax purposes, from the
sale of medical cannabis to a patient or to a caregiver. The tax imposed by
this section shall may not be added by the dispensary as a
separate charge or line item on any sales slip, invoice, receipt, other
statement, or memorandum of the price paid by a patient, or caregiver.
(c) Definitions. — For purposes of this article:
(1)“Gross receipts” means and includes the gross
receipts, however denominated, derived from the sale, distribution, or transfer
of medical cannabis, without any deduction on account of the cost of property
sold; the cost of materials used to grow, process, or sell the medical
cannabis; labor costs, taxes, royalties paid in cash or in kind, or otherwise;
interest or discount paid; or any other expense, however denominated.
(2) “Person” includes any natural person, corporation,
partnership, limited liability company, or other business entity as those terms
are defined in §11-1-1 et seq. of this code.
(d) Payment of tax and reports. — Every person subject to the tax imposed by this section shall make quarterly payments under this section for each calendar quarter at the rate prescribed in subsection (b) of this section on the gross receipts received or accrued for the calendar quarter, depending upon the person’s method of accounting for federal income tax purposes. The tax shall be due and payable on the 20th day of January, April, July, and October for the preceding calendar quarter. When the payment of tax is due, the person shall file a tax return in a form prescribed by the Tax Commissioner. The Tax Commissioner may require such forms, schedules, and returns and impose such filing and remittance requirements as may be necessary or convenient for the efficient administration of taxes imposed by this section.
(e) Electronic filing and payment. ─ The taxes imposed by this section shall be paid to the Tax Commissioner by electronic funds transfer, unless electronic payment is prohibited by state or federal law. Tax returns required by this section shall be filed electronically with the Tax Commissioner.
(f) Liability for reporting and payment of tax. — If any dispensary does not renew its permit, gives up its permit, loses its permit to operate a dispensary, or otherwise ceases business then any tax, additions to tax, penalties, and interest imposed by this article and by §11-10-1 et seq. of this code shall become due and payable immediately and the dispensary shall make a final return or returns and pay any tax which is due within 30 days after not renewing its permit, giving up its permit, losing its permit to operate a dispensary, or otherwise ceasing business. The unpaid amount of any tax is a lien upon the property of the dispensary and of its owners.
(g) Deposits of proceeds. — All money received from the tax imposed under this section, including any interest and additions to tax paid under §11-10-1 et seq. of this code, less the amount of any refunds, shall be deposited into the Medical Cannabis Program Fund.
(h) Exemption. —
Sales of medical cannabis shall not be subject to the taxes imposed by §11-15-1
et seq. and §11-15A-1 et seq. of this code if gross receipts from
the sale thereof are included in the measure of tax under this section and the
tax has been paid as provided in this section. Additionally, sales of medical
cannabis shall may not be subject to a special district excise
tax imposed by a county or municipality pursuant to this code, or to a county
or municipal sales tax.
(i) Information. —
(1) Persons subject to the tax imposed by this section shall provide to the Tax Commissioner any information the Tax Commissioner may require to administer, collect, and enforce the tax imposed by this section.
(2) Notwithstanding any
provision of §11-10-1 et seq. of this code or of this article to the
contrary, the Tax Commissioner, the bureau, and the Secretary of Health and
Human Resources may enter into written agreements pursuant to which the Tax
Commissioner will disclose to designated employees of the bureau and the
Secretary of Health and Human Resources, whether a particular grower,
processor, or dispensary is in good standing with the Tax Commissioner, and other
return and return information consistent with and necessary for the
administration of this article. the The bureau and the
secretary will disclose to designated employees of the Tax Commissioner
information a grower, processor, or dispensary provides to the bureau and the
secretary pursuant to this code. Tax Pursuant to §11-10-5d of this
code, tax information disclosed pursuant to a written agreement shall
remain confidential in the hands of the receiver and shall not be disclosable
under §29B-1-1 et seq. of this code. To the extent feasible, this
information should be shared or exchanged electronically.
(j) Rules. — The Tax Commissioner may promulgate, in accordance with the provisions of §29A-3-1 et seq. of this code, such procedural, interpretive, or legislative rules, including emergency rules, as the Tax Commissioner may deem necessary or convenient for the efficient administration of taxes imposed by §16A-9-1 of this code.
NOTE: The purpose of this bill is to allow the disclosure and sharing of necessary tax information related to medical cannabis permit holders between the Tax Commissioner, the Bureau for Public Health, and the Secretary of the Department of Health and Human Resources.
Strike-throughs indicate language that would be stricken from a heading or the present law, and underscoring indicates new language that would be added.