HLS 21RS-493 ENGROSSED
2021 Regular Session
HOUSE BILL NO. 434
BY REPRESENTATIVE NELSON
TAX: Levies taxes on sales of cannabis and provides for the use of the avails of the taxes
1 AN ACT
2To amend and reenact the heading of Part I of Chapter 3 of Subtitle IV of Title 47 of the
3 Louisiana Revised Statutes of 1950, R.S. 47:2601, 2602(2), 2603(A) and (C), 2604,
4 2607(A) and (C), and 2610, to enact Chapter 20 of Subtitle II of Title 47 of the
5 Louisiana Revised Statutes of 1950, to be comprised of R.S. 47:1699.1 through
6 1699.5, and to repeal R.S. 47:2602(3), relative to cannabis; to levy taxes on the retail
7 sale of cannabis; to provide for the rate of the taxes; to provide for the use of the
8 avails of the taxes; to provide for definitions; to provide for the authority of the
9 secretary of the Department of Revenue; to repeal the marijuana tax levied on certain
10 dealers; to repeal requirements for the purchase of marijuana tax stamps; to provide
11 for effectiveness; and to provide for related matters.
12Be it enacted by the Legislature of Louisiana:
13 Section 1. The heading of Part I of Chapter 3 of Subtitle IV of Title 47 of the
14Louisiana Revised Statues of 1950, R.S. 47:2601, 2602(2), 2603(A) and (C), 2604, 2607(A)
15and (C), and 2610 are hereby amended and reenacted and Chapter 20 of Subtitle II of Title
1647 of the Louisiana Revised Statutes of 1950, comprised of R.S. 47:1699.1 through 1699.5,
17is hereby enacted to read as follows:
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1 CHAPTER 20. CANNABIS TAX AND LICENSE FEES
2 §1691.1. Definitions
3 A. The following terms as used in this Chapter shall have the meaning
4 ascribed to them in this Subsection unless the context clearly indicates otherwise:
5 (1) "Cannabis retail sale" means the sale of a cannabis product by a retailer
6 to a consumer and shall include all transactions as the secretary of the Department
7 of Revenue, upon investigation, finds to be in lieu of sales.
8 (2) "Cannabis wholesale sale" means the sale of cannabis by a commercial
9 grower licensee to a retailer or the sale of a cannabis product by a cannabis processor
10 licensee to a retailer.
11 B. The terms used in this Chapter shall have the meanings ascribed to them
12 in R.S. 26:941 unless the context clearly indicates otherwise.
13 §1699.2. Imposition of tax
14 A. There is hereby levied a tax upon each cannabis retail sale. The tax shall
15 be at the rate of fifteen percent of the cannabis retail sales price. The tax shall be
16 levied in addition to state and local sales and use tax or any other tax and shall be
17 reported monthly by the retailer on forms prescribed by the secretary and paid by the
18 retailer on or before the twentieth day of the month following the month to which the
19 tax is applicable.
20 B. The provisions of this Section shall not apply to any product subject to tax
21 pursuant to R.S. 47:1693 or subject to a fee pursuant to R.S. 40:1046.
22 §1699.3. Enforcement
23 The secretary of the Department of Revenue shall collect, supervise, and
24 enforce the collection of all taxes, penalties, interest, and other charges that may be
25 due under the provisions of this Chapter in the same manner provided for by law
26 under the provisions of this Subtitle.
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1 §1699.4. Rules
2 The secretary of the Department of Revenue may promulgate rules in
3 accordance with the Administrative Procedure Act as are deemed necessary by the
4 secretary to implement the provisions of this Chapter.
5 §1699.5. Disposition of collections
6 A. Twenty percent of the taxes levied pursuant to this Chapter shall be
7 remitted to the municipality in which the sale occurred to be used for law
8 enforcement in the municipality. However, if the sale did not take place in a
9 municipality, twenty percent of the taxes levied pursuant to this Chapter shall instead
10 be remitted to the sheriff for the parish in which the sale occurred to be used for law
11 enforcement in the parish.
12 B. Thirty percent of the taxes levied pursuant to this Chapter shall be
13 remitted to the municipality in which the sale occurred. However, if the sale did not
14 take place in a municipality, thirty percent of the taxes levied pursuant to this
15 Chapter shall instead be remitted to the parish in which the sale occurred.
16 C. The remaining fifty percent of the taxes levied pursuant to this Chapter
17 shall be paid into the state treasury and, after compliance with the requirements of
18 Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond
19 Security and Redemption Fund, shall be credited to the state general fund.
20 * * *
21 PART I. MARIJUANA AND CONTROL LED DANGEROUS
22 SUBSTANCES TAX
23 §2601. Imposition of tax
24 There is hereby levied a tax upon dealers of marijuana and controlled
25 dangerous substances, as defined herein, within the state of Louisiana, according to
26 the classification and rates hereinafter set forth:
27 (1) Marijuana. Upon each gram of marijuana, or each portion of a gram, a
28 tax of three dollars and fifty cents.
29 (2) Controlled dangerous substances. (a)(1) Upon each gram of controlled
30 dangerous substance, or portion of a gram, a tax of two hundred dollars.
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1 (b)(2) Upon each ten dosage units unit of a controlled dangerous substance
2 that is not sold by weight, or portion thereof, a tax of four hundred dollars.
3 §2602. Definitions
4 As used in this Part, the following terms shall have the meaning ascribed to
5 them in this Section unless the context clearly indicates otherwise:
6 * * *
7 (2) "Dealer" means a person who in violation of Louisiana law manufactures,
8 produces, ships, transports, or imports into Louisiana or in any manner acquires or
9 possesses more than forty-two and one-half grams of marijuana, or seven or more
10 grams of any controlled dangerous substance, or ten or more dosage units of any
11 controlled dangerous substance which is not sold by weight.
12 * * *
13 §2603. Use of stamps required
14 A. Tax stamps. In order to enforce the collection of the tax levied by this
15 Part, the secretary shall design and have printed or manufactured stamps of such size
16 and denomination as may be determined by him and so prepared as to permit them
17 to be easily affixed to or stamped on marijuana or controlled dangerous substances,
18 or containers thereof.
19 * * *
20 C. Affixing stamps. Stamps shall be affixed by the dealer on the smallest
21 container or package of marijuana or controlled dangerous substance that is subject
22 to the tax, to permit the secretary to readily ascertain by an inspection of any dealer's
23 stock on hand whether or not the tax has been paid. The dealer shall cause to be
24 affixed on every gram or unit of marijuana or controlled dangerous substance on
25 which a tax is due stamps of an amount equaling the tax due thereon, before any
26 dealer sells, offers for sale, handles, removes, or otherwise disturbs or distributes the
27 same. Each stamp may be used only once.
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1 §2604. Authority to issue rules and regulations
2 The secretary is hereby authorized to issue rules and regulations not in
3 conflict herewith in order to make effective the provisions of this Part. The secretary
4 shall adopt a uniform system of providing, affixing, and displaying official stamps
5 for marijuana and controlled dangerous substances on which a tax is imposed.
6 * * *
7 §2607. Penalties
8 A. No dealer may possess any marijuana or controlled dangerous substance
9 upon which a tax is imposed by this Part. In addition to any other criminal penalties,
10 if a dealer possesses any marijuana or controlled dangerous substance upon which
11 the tax has not been paid as evidenced by a stamp, such dealer shall be subject to the
12 additional penalties contained in this Part.
13 * * *
14 C. In addition to the tax penalty imposed, a dealer distributing or possessing
15 marijuana or controlled dangerous substances without affixing the appropriate
16 stamps is guilty of a crime and, upon conviction, may be sentenced to imprisonment
17 for not more than five years or receive a penalty of not more than ten thousand
18 dollars, or both.
19 * * *
20 §2610. Exceptions
21 Nothing in this Part requires persons lawfully in possession of marijuana or
22 a controlled dangerous substance to pay the tax required under this Part.
23 Section 2. R.S. 47:2602(3) is hereby repealed in its entirety.
24 Section 3. This Act shall become effective if and when the Act which originated as
25House Bill No. 699 of this 2021 Regular Session of the Legislature is enacted and becomes
26effective.
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 434 Engrossed 2021 Regular Session Nelson
Abstract: Levies a tax on cannabis, dedicates the avails of the tax, and repeals the
marijuana tax levied on certain dealers.
Proposed law levies a 15% tax upon each cannabis retail sale. Defines "cannabis retail sale"
as the sale of a cannabis product by a retailer to a consumer. Provides that the tax is levied
in addition to state and local sales and use tax or any other tax and shall be reported and paid
by the retailer.
Proposed law provides that it does not apply to any product subject to tax pursuant to present
law (R.S. 47:1693) or subject to a fee pursuant to present law (R.S. 40:1046).
Proposed law provides that 20% of the taxes levied pursuant proposed law shall be remitted
to the municipality in which the sale occurred to be used for law enforcement in the
municipality. However, provides that if the sale did not take place in a municipality, 20%
of the taxes levied pursuant to proposed law shall instead be remitted to the sheriff for the
parish in which the sale occurred to be used for law enforcement in the parish.
Proposed law provides that 30% of the taxes levied pursuant to proposed law shall be
remitted to the municipality in which the sale occurred. However, provides that if the sale
did not take place in a municipality, 30% of the taxes levied pursuant to proposed law shall
instead be remitted to the parish in which the sale occurred.
Proposed law provides that the remaining 50% of the taxes levied pursuant to proposed law
shall be paid into the state treasury and, after compliance with the requirements of present
constitution (Art. VII, §9(B)) relative to the Bond Security and Redemption Fund, shall be
credited to the state general fund.
Proposed law provides for definitions.
Present law provides for the imposition of a tax on marijuana to be paid by marijuana dealers
at the rate of $3.50 per gram. In order to enforce the tax, marijuana dealers must purchase
tax stamps from the Dept. of Revenue and affix the stamp to the marijuana container or
package to evidence that the tax has been paid.
Proposed law repeals the imposition of the tax on marijuana and all provisions relative to the
tax stamp.
Effective if and when House Bill No. 699 of this 2021 R.S. is enacted and becomes effective.
(Amends the heading of Part I of Chapter 3 of Subtitle IV of Title 47, R.S. 47:2601, 2602(2),
2603(A) and (C), 2604, 2607(A) and (C), and 2610; Adds R.S. 47:1699.1-1699.5; Repeals
R.S. 47:2602(3))
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Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Remove provisions related to the wholesale tax on cannabis.
2. Change the tax rate on the retail sale of cannabis from 10% to 15%.
3. Make technical changes.
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