This bill is part of the 2021 Cannabis Bills section of our ongoing update on California Cannabis Legislation – see the full California Cannabis Law Legislative Update which includes information on cannabis bills from other years.
AB 725 (Ward D) Cannabis tax: penalty.
AUMA imposes an excise tax on the purchase of cannabis and cannabis products at the rate of 15% of the average market price of any retail sale by a cannabis retailer, as specified. AUMA, and as additionally amended by statute, also imposes a cultivation tax upon all cultivators on all harvested cannabis that enters the commercial market, at specified rates per dry-weight ounce of cannabis flowers and leaves. AUMA imposes a monetary penalty, among other things, on a licensee who fails to pay the excise or cultivation tax of at least 1/2 of the amount of taxes not paid.
AUMA requires these taxes and penalties, among other amounts collected, to be deposited in the California Cannabis Tax Fund, a continuously appropriated fund, for specified purposes required under AUMA.
This bill would remove the monetary penalty imposed on a licensee who fails to pay the excise or cultivation tax enacted by AUMA, but would retain the monetary penalty on a person who is required to be licensed under AUMA but who is not licensed, and who fails to pay the excise or cultivation taxes, as specified.
AUMA authorizes the Legislature to amend its provisions with a2/3 vote of both houses to further its purposes and intent.
This bill would declare that its provisions further specified purposes and intent of the act.
Read more about California Cannabis Legislation – see the full California Cannabis Law Legislative Update.
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