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.
SB 824 California Department of Tax and Fee Administration.
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 provides various exemptions from those taxes, including an exemption for food products, as defined, for human consumption. Existing law defines “food products” to not include medicines and preparations in liquid, powdered, granular, tablet, capsule, lozenge, and pill form sold as dietary supplements or adjuncts.
This bill additionally would specify that “food products” does not include cannabis, medicinal cannabis, or medicinal cannabis products, as defined.
This bill also makes various other changes with respect to taxes administered by the California Department of Tax and Fee Administration.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.
Read more about California Cannabis Legislation – see the full California Cannabis Law Legislative Update.
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