AB 828: Cannabis excise tax: remittance and collection.
- Session Year: 2021-2022
- House: Assembly
- Latest Version Date: 2021-04-20
Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act, an initiative measure, imposes an excise tax on the purchase of cannabis and cannabis products and a cultivation tax upon a cultivator on harvested cannabis that enters the commercial market, as specified. Existing law requires the California Department of Tax and Fee Administration to administer and collect those taxes.
Existing law requires the cannabis retailer to collect the cannabis excise tax from the purchaser and to remit that tax to a distributor, and the distributor is required to remit that tax to the department, as specified. Under existing law, the excise tax is due and payable to the department quarterly on or before the last day of the month following each quarterly period of 3 months.
This bill, instead, would authorize a distributor that has not collected the excise tax from the cannabis retailer in the quarter that the cannabis or cannabis product was purchased to remit the tax in the return for the following quarter.
Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act, an initiative measure, imposes an excise tax on the purchase of cannabis and cannabis products and a cultivation tax upon a cultivator on harvested cannabis that enters the commercial market, as specified. Existing law requires the California Department of Tax and Fee Administration to administer and collect those taxes.
Existing law requires the cannabis retailer to collect the cannabis excise tax from the purchaser and to remit that tax to a distributor, and the distributor is required to remit that tax to the department, as specified. Under existing law, the excise tax is due and payable to the department quarterly on or before the last day of the month following each quarterly period of 3 months.
This bill, instead, would authorize a distributor that has not collected the excise tax from the retailer in the quarter that the cannabis or cannabis product was purchased to remit the tax in the return for the following quarter.
Existing sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law defines in this state for purposes of those taxes.This bill would make nonsubstantive changes to that definition.Existing sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law defines in this state for purposes of those taxes.
This bill would make nonsubstantive changes to that definition.
(a)Except as provided in, or unless otherwise prescribed by the board pursuant to, subdivision (c), the excise tax and cultivation tax imposed by this part is due and payable to the department quarterly on or before the last day of the month following each quarterly period of three months. On or before the last day of the month following each quarterly period, a return for the preceding quarterly period shall be filed with the department by each distributor using electronic media. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the department. If the cultivation tax is paid by stamp pursuant to subdivision (d) of Section 34012, the department may by regulation determine when and how the tax shall be paid.
(b)The department may require every person engaged in the cultivation, distribution, manufacturing, or retail sale of cannabis or cannabis products, or any other person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code to file, on or before the 25th day of each month, a report using electronic media respecting the persons inventory, purchases, and sales during the preceding month and any other information as the department may require to carry out the purposes of this part. Reports shall be authenticated in a form or pursuant to methods as may be prescribed by the department.
(c)(1)If a distributor has not collected the excise tax imposed by this part from the cannabis retailer in the quarter that the cannabis or cannabis product was purchased, the distributor may remit the tax in the return for the following quarter.
(2)The department may adopt regulations prescribing the due date for returns and remittances of excise tax collected by a distributor in an arms length transaction pursuant to subdivision (b) of Section 34011.
(d)The department may make examinations of the books and records of any person licensed, or required to be licensed, pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code, as it may deem necessary in carrying out this part.
(a)Unless Except as provided in, or unless otherwise prescribed by the board pursuant to to, subdivision (c), the excise tax and cultivation tax imposed by this part is due and payable to the board department quarterly on or before the last day of the month following each quarterly period of three months. On or before the last day of the month following each quarterly period, a return for the preceding quarterly period shall be filed with the board department by each distributor using electronic media. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the board. department. If the cultivation tax is paid by stamp pursuant to subdivision (d) of Section 34012 34012, the board department may by regulation determine when and how the tax shall be paid.
(b)The board department may require every person engaged in the cultivation, distribution, manufacturing, retail sale of cannabis or cannabis products, or any other person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code to file, on or before the 25th day of each month, a report using electronic media respecting the persons inventory, purchases, and sales during the preceding month and any other information as the board department may require to carry out the purposes of this part. Reports shall be authenticated in a form or pursuant to methods as may be prescribed by the board. department.
(c)(1)If a distributor has not collected the excise tax imposed by this part from the retailer in the quarter that the cannabis or cannabis product was purchased, the distributor may remit the tax in the return for the following quarter.
(c)(2)The board department may adopt regulations prescribing the due date for returns and remittances of excise tax collected by a distributor in an arms length transaction pursuant to subdivision (b) of Section 34011.
(d)The board department may make examinations of the books and records of any person licensed, or required to be licensed, pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code, as it may deem necessary in carrying out this part.
SECTION 1.Section 6017 of the Revenue and Taxation Code is amended to read:6017.In this state or in the state means within the exterior limits of the State of California and includes all territory within these limits owned by or ceded to the United States of America.In this State or in the State In this state or in the state means within the exterior limits of the State of California and includes all territory within these limits owned by or ceded to the United States of America.
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Date
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Status
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| Feb 1, 2022 | From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. |
| Jan 31, 2022 | Died pursuant to Art. IV, Sec. 10(c) of the Constitution. |
| Apr 21, 2021 | Re-referred to Com. on REV. & TAX. |
| Apr 20, 2021 | From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended. |
| Mar 22, 2021 | Re-referred to Com. on REV. & TAX. |
| Mar 18, 2021 | Referred to Com. on REV. & TAX. |
| Feb 18, 2021 | From printer. May be heard in committee March 20. |
| Feb 17, 2021 | Read first time. To print. |
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Bill Co-Author(s):