Bill Text: CA AB821 | 2015-2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Sales and use taxes: administration: payments: dispensaries.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Passed) 2016-09-29 - Chaptered by Secretary of State - Chapter 811, Statutes of 2016. [AB821 Detail]

Download: California-2015-AB821-Introduced.html

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BILL NUMBER: AB 821	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gipson

                        FEBRUARY 26, 2015

   An act to add Section 6369.6 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 821, as introduced, Gipson. Sales and use taxes: exemption:
medical marijuana: terminally ill patient.
   Existing sales and use tax laws impose taxes 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
and provides various exemptions from those taxes. Existing law
relieves the seller from liability for the sales tax if an exemption
certificate is taken in good faith, and imposes liability for sales
tax on the purchaser if the tangible personal property purchased is
used in a manner or for a purpose not qualifying for the exemption,
as provided.
   This bill would exempt from those taxes the gross receipts from
the sale of, and the storage, use, or other consumption of, medical
marijuana for consumption by a terminally ill patient, and would
require the purchaser to provide an exemption certificate as
provided.
   The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes
counties and cities to impose local sales and use taxes in conformity
with the Sales and Use Tax Law, and existing law authorizes
districts, as specified, to impose transactions and use taxes in
accordance with the Transactions and Use Tax Law, which conforms to
the Sales and Use Tax Law. Amendments to state sales and use taxes
are incorporated into these laws.
   Section 2230 of the Revenue and Taxation Code provides that the
state will reimburse counties and cities for revenue losses caused by
the enactment of sales and use tax exemptions.
   This bill would provide that, notwithstanding Section 2230 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse any local agencies for sales and use tax revenues
lost by them pursuant to this bill.
   This bill would take effect immediately as a tax levy, but its
operative date would depend on its effective date.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 6369.6 is added to the Revenue and Taxation
Code, to read:
   6369.6.  (a) There are exempted from the taxes imposed by this
part the gross receipts from the sale of, and the storage, use, or
other consumption in this state of, medical marijuana for consumption
by a terminally ill patient.
   (b) (1) No exemption shall be allowed under this section unless
the purchaser furnishes the retailer with a medical marijuana
exemption certificate, completed in accordance with any instructions
or regulations as the board may prescribe, and the retailer retains
the exemption certificate in its records. The medical marijuana
exemption certificate shall contain the cost of the medical marijuana
that is exempt pursuant to subdivision (a), identification card
serial number, and any other information deemed necessary by the
board.
   (2) The board shall establish and maintain a program for the
issuance of a medical marijuana exemption certificate. A medical
marijuana exemption certificate shall be issued to a person or his or
her primary caregiver upon satisfactory proof of terminal illness,
and shall be valid for the same period as the identification card
issued to the terminally ill patient pursuant to Article 2.5
(commencing with Section 11362.7) of Chapter 6 of Division 10 of the
Health and Safety Code and may be renewed once, unless otherwise
authorized by the board under regulations adopted pursuant to this
section.
   (c) A person who seeks a medical marijuana exemption certificate
shall provide all of the following to the board, in a manner as
determined by the board:
   (1) The name of the terminally ill patient.
   (2) Written documentation by the patient's attending physician
that certifies the patient is terminally ill based on the
circumstances and information available to the physician at the time
of diagnosis.
   (3) The name, office address, office telephone number, and
California medical license number of the patient's attending
physician.
   (4) The name and the duties of the primary caregiver.
   (5) A government-issued photo identification card of the person
and of the designated primary caregiver, if any.
   (6) The identification card issued by the Department of Public
Health.
   (7) Any other information deemed necessary by the board.
   (d) For purposes of this section:
   (1) "Attending physician" has the same meaning as that term is
defined in Section 11362.7 of the Health and Safety Code.
   (2) "Marijuana" has the same meaning as that term is defined in
Section 11018 of the Health and Safety Code.
   (3) "Medical marijuana" means marijuana used for medical purposes
in accordance with Sections 11362.5 and 11362.7 of the Health and
Safety Code.
   (4) "Primary caregiver" has the same meaning as that term is
defined in Section 11362.7 of the Health and Safety Code.
   (5) "Terminally ill" has the same meaning as that term is defined
in subdivision (c) of Section 11159.2 of the Health and Safety Code.
   (6) "Written documentation" means certification by the attending
physician that the patient is terminally ill.
   (e) Any person that uses a medical marijuana exemption certificate
in a manner contrary to the requirements of this section shall be
liable for payment of sales tax as if the purchaser were a retailer
making a retail sale of the property at the time of that use and the
cost of the marijuana to the purchaser shall be deemed the gross
receipts from the retail sale.
  SEC. 2.  Notwithstanding Section 2230 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any sales and use tax revenues lost by
it under this act.
  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.