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AB-828 Cannabis excise tax: remittance and collection.(2021-2022)

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Date Published: 04/20/2021 09:00 PM
AB828:v97#DOCUMENT

Amended  IN  Assembly  April 20, 2021
Amended  IN  Assembly  March 18, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 828

Introduced by Assembly Member Bonta Cooper

February 17, 2021

An act to amend Section 34015 of the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 828, as amended, Bonta Cooper. Cannabis excise tax: remittance and collection.
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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 34015 of the Revenue and Taxation Code is amended to read:

34015.
 (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 person’s 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 arm’s 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.