AB 948: Cannabis: taxation: electronic funds transfer.

Session Year: 2017-2018
House: Assembly

Version:

Existing law, the Medical Cannabis Regulation and Safety Act (MCRSA), establishes a program for the licensing and regulation of medical cannabis. Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), added by the approval of Proposition 64 at the November 8, 2016, statewide general election, provides for the licensure and regulation of certain commercial nonmedical marijuana activities.

The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure enacted by the approval of Proposition 64 at the November 8, 2016, statewide general election, authorizes the consumption of nonmedicinal cannabis by persons over 21 years of age, referred to as adult-use cannabis, and provides for the licensure and regulation of certain commercial adult-use cannabis activities. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities.

The Sales and Use Tax Law, which is administered by the State Board of Equalization, California Department of Tax and Fee Administration, requires any person whose estimated tax liability under that law averages $10,000 or more per month to remit amounts due by electronic funds transfer, as provided. That law authorizes, before January 1, 2022, a person issued a sellers permit for a place of business that is a dispensary, as defined in MCRSA, the Medical Cannabis Regulation and Safety Act, which was repealed, to remit amounts due for retail sales at the dispensary by a means other than electronic funds transfer.

This bill, until January 1, 2021, 2022, would instead authorize a person licensed under MCRSA or AUMA MAUCRSA whose estimated tax liability under that law averages $10,000 or more per month to remit amounts due by a means other than electronic funds transfer if the board deems it necessary to facilitate collection of amounts due.

AUMA requires the board to administer and collect taxes imposed by AUMA to be administered and collected pursuant to the Fee Collection Procedure Law, as specified. The Fee Collection Procedure Law requires any person whose estimated tax liability under that law averages $20,000 or more per month to remit amounts due by electronic funds transfer, as provided.

This bill, until January 1, 2021, 2022, would authorize the board to exempt a person required to pay or collect specified taxes imposed by AUMA, on a person licensed to engage in commercial cannabis activity under MAUCRSA whose estimated tax liability under that law averages $20,000 or more per month, month from the requirement to remit amounts due by electronic funds transfer if the board department deems it necessary to facilitate collection of amounts due.

AUMA authorizes the Legislature to amend the act to further the purposes and intent of the act with a ²/₃ vote of the membership of each house of the Legislature, except as provided.

This bill would declare that it furthers the purposes and intent of AUMA for a specified reason.

Discussed in Hearing