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Bills

AB 3248: Cannabis excise tax: rate reduction.

  • Session Year: 2023-2024
  • House: Assembly
  • Latest Version Date: 2024-03-21

Current Status:

Failed

(2024-04-19: In committee: Set, first hearing. Hearing canceled at the request of author.)

Introduced

First Committee Review

First Chamber

Second Committee Review

Second Chamber

Enacted

Version:

The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure, among other things, imposed a weight-based cultivation tax on harvested cannabis that enters the commercial market and a separate excise tax on purchasers of cannabis or cannabis products sold in this state at the rate of 15% of the gross receipts of any retail sale by a cannabis retailer, as specified. Existing law that amended AUMA, beginning on January 1, 2023, discontinued the cultivation tax, and, for the 202526 fiscal year and every 2 years thereafter, requires, on or before May 1 of the fiscal year immediately preceding the applicable fiscal year, the cannabis excise tax rate to be adjusted by a percentage that will generate an amount of revenue that would have been collected pursuant to the cultivation tax imposed prior to its discontinuation, as specified.

Under this bill, the portion of the rate of the excise tax that is not subject to the above-described cultivation tax adjustment would be reduced from 15% to 5%.

AUMA authorizes legislative amendment of its provisions with a 2/3 vote of both houses, without submission to the voters, to further its purposes and intent, except as specified.

This bill would declare that its provisions further the purposes and intent of AUMA.

This bill would take effect immediately as a tax levy.

Existing state 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 of, 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 requires a person desiring to engage in or conduct business as a seller within this state to file with the California Department of Tax and Fee Administration an application for a permit for each place of business, as prescribed.This bill would make nonsubstantive changes to that provision.

News Coverage:

AB 3248: Cannabis excise tax: rate reduction. | Digital Democracy