BILL NUMBER: SBX8 62INTRODUCED BILL TEXT INTRODUCED BY Senator Calderon FEBRUARY 12, 2010 An act to add Part 13.3 (commencing with Section 31001) to Division 2 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGEST SB 62, as introduced, Calderon. Taxation: marijuana. Existing law provides for the imposition of various taxes within the state, including taxes upon the distribution of cigarettes and tobacco products. This bill would, commencing on and after the first day of the first calendar quarter commencing more than 90 days on or after the effective date of the bill, impose a tax on the distribution, as defined, of medical marijuana, as defined, at a rate that is equivalent to that imposed upon tobacco products under the Cigarette and Tobacco Products Tax Law and would require the taxes to be administered in accordance with the provisions of the Cigarette and Tobacco Products Tax Law, as provided. The revenues collected from the tax would be deposited in the Marijuana Tax Account, which would be created by the measure. Because this bill would expand the application of the provisions of the Cigarette and Tobacco Products Tax Law, the violation of which is a crime, it would impose a state-mandated local program. 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 is required by this act for a specified reason. The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on January 8, 2010. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on January 8, 2010, pursuant to the California Constitution. This bill would result in a change in state taxes for the purpose of increasing state revenues within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature. This bill would take effect immediately as a tax levy. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Part 13.3 (commencing with Section 31001) is added to Division 2 of the Revenue and Taxation Code, to read: PART 13.3. Marijuana Tax Law 31001. This part shall be known and may be cited as the Marijuana Tax Law. 31002. For purposes of this part: (a) "Distribution" or "distributes" means the sale in this state of untaxed medical marijuana, other than the lawful sale of untaxed medical marijuana to a collective or cooperative, as described in Article 2.5 (commencing with Section 11362.7) of Chapter 6 of Division 10 of the Health and Safety Code. (b) "Distributor" means every person who distributes medical marijuana. (c) "Medical marijuana" means marijuana that is regulated under Article 2.5 (commencing with Section 11362.7) of Chapter 6 of Division 10 of the Health and Safety Code. 31003. There shall be imposed upon every distributor a tax upon the distribution of medical marijuana at a rate equal to the tobacco products tax rate, as determined pursuant to Part 13 (commencing with Section 30001), for medical marijuana distributed on and after the first day of the first calendar quarter commencing more than 90 days after the effective date of this part. 31004. The taxes imposed under this part shall be administered in accordance with Part 13, or its successor statute, with such changes as to substitute "medical marijuana" for "tobacco products," to the extent that Part 13, or its successor statute, is not inconsistent with this part. 31005. All revenues, less refunds, derived from a tax imposed pursuant to this part shall be transferred to the Marijuana Tax Account, which is hereby created in the General Fund. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. SEC. 3. This act addresses the fiscal emergency declared by the Governor by proclamation on January 8, 2010, pursuant to subdivision (f) of Section 10 of Article IV of the California Constitution. SEC. 4. This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.