HLS 21RS-1217 ORIGINAL
2021 Regular Session
HOUSE BILL NO. 692
BY REPRESENTATIVE NEWELL
TAX: Levies taxes on sales of cannabis and provides for the use of the avails of the taxes
1 AN ACT
2To enact Subpart Q-4 of Part II of Chapter 1 of Subtitle I of Title 39 of the Louisiana
3 Revised Statutes of 1950, to be comprised of R.S. 39:100.125, and Chapter 20 of
4 Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950, to be comprised of
5 R.S. 47:1699.1 through1699.5, relative to cannabis; to levy taxes on the retail sale
6 and wholesale sale of cannabis; to provide for the rate of the taxes; to provide for the
7 use of the avails of the taxes; to create the State Police Operations Fund; to provide
8 for definitions; to provide for the authority and duties of the secretary of the
9 Department of Revenue; to provide for effectiveness; and to provide for related
10 matters.
11Be it enacted by the Legislature of Louisiana:
12 Section 1. Subpart Q-4 of Part II of Chapter 1 of Subtitle I of Title 39 of the
13Louisiana Revised Statutes of 1950, comprised of R.S. 39:100.125, is hereby enacted to read
14as follows:
15 SUBPART Q-4. STATE POLICE OPERATIONS FUND
16 §100.125. State Police Operations Fund
17 A. There is hereby created in the state treasury, as a special fund, the "State
18 Police Operations Fund", hereafter in this section referred to as the "fund".
19 B. The monies in the fund shall be used exclusively for operating expenses
20 of the office of state police.
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HB NO. 692
1 C. After compliance with the requirements of Article VII, Section 9(B) of
2 the Constitution of Louisiana relative to the Bond Security and Redemption Fund,
3 an amount equal to ten percent of the taxes levied pursuant to Chapter 20 of Subtitle
4 II of Title 47 of the Louisiana Revised Statutes of 1950 shall be deposited into the
5 fund as provided in R.S. 47:1699.5(E).
6 D. Monies in the fund shall be invested in the same manner as monies in the
7 general fund. Interest earned on investment of monies in the fund shall be credited
8 to the fund. Unexpended and unencumbered monies in the fund at the end of the
9 fiscal year shall remain in the fund.
10 Section 2. Chapter 20 of Subtitle II of Title 47 of the Louisiana Revised Statutes of
111950, comprised of R.S. 47:1699.1 through 1699.5, is hereby enacted to read as follows:
12 CHAPTER 20. CANNABIS TAX
13 §1691.1. Definitions
14 The following terms as used in this Chapter shall have the meaning ascribed
15 to them in this section unless the context clearly indicates otherwise:
16 (1) "Cannabis" shall have the same meaning as provided in R.S. 26:941.
17 (2) "Cannabis product" shall have the same meaning as provided in R.S.
18 26:941.
19 (3) "Cannabis retail sale" means the sale of a cannabis product by a cannabis
20 retailer to a consumer and shall include all transactions as the secretary of the
21 Department of Revenue, upon investigation, finds to be in lieu of sales.
22 (4) "Cannabis retailer" shall have the same meaning as provided in R.S.
23 26:941.
24 (5) "Cannabis wholesale sale" means the sale of cannabis by a production
25 facility to a cannabis retailer.
26 (6) "Municipality" means any incorporated city, town, or village.
27 (7) "Productivity facility" shall have the same meaning as provided in R.S.
28 3:4763.
29 §1699.2. Imposition of tax
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HB NO. 692
1 A. There is hereby levied a tax upon each cannabis retail sale. The tax shall
2 be at the rate of ten percent of the cannabis retail sales price. The tax shall be levied
3 in addition to state and local sales and use tax or any other tax and shall be reported
4 monthly by the cannabis retailer on forms prescribed by the secretary of the
5 Department of Revenue and paid by the cannabis retailer on or before the twentieth
6 day of the month following the month to which the tax is applicable.
7 B. There is hereby levied a tax upon each cannabis wholesale sale. The tax
8 shall be at the rate of five percent of the cannabis wholesale sales price. The tax
9 shall be reported monthly by the production facility on forms prescribed by the
10 secretary of the Department of Revenue and paid by the production facility on or
11 before the twentieth day of the month following the month to which the tax is
12 applicable.
13 C. The provisions of this Section shall not apply to any product subject to tax
14 pursuant to R.S. 47:1693 or subject to a fee pursuant to R.S. 40:1046.
15 §1699.3. Enforcement
16 The secretary of the Department of Revenue shall collect, supervise, and
17 enforce the collection of all taxes, penalties, interest, and other charges that may be
18 due under the provisions of this Chapter in the same manner provided for by law
19 under the provisions of this Subtitle.
20 §1699.4. Rules
21 The secretary of the Department of Revenue may promulgate rules in
22 accordance with the Administrative Procedure Act as are deemed necessary by the
23 secretary to implement the provisions of this Chapter.
24 §1699.5. Disposition of collections
25 A. The Department of Revenue shall remit the amount of twenty percent of
26 the taxes levied pursuant to this Chapter to the municipality in which the sale
27 occurred to be used for law enforcement in the municipality. However, if the sale
28 did not take place in a municipality, the Department of Revenue shall instead remit
29 the amount of twenty percent of the taxes levied pursuant to this Chapter to the
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HB NO. 692
1 sheriff for the parish in which the sale occurred to be used for law enforcement in the
2 parish.
3 B.(1)(a) Except as provided in Paragraph (2) of this Subsection, the
4 Department of Revenue shall remit the amount of five percent of the taxes levied
5 pursuant to this Chapter on a pro rata basis to the sheriffs for each of the parishes that
6 do not include a cannabis retailer, to be used for law enforcement in the parishes. In
7 Orleans Parish, the amount shall be divided equally between and remitted to the
8 sheriff and the New Orleans Police Department.
9 (b) If a cannabis retailer permit is subsequently granted in a parish, the pro
10 rata portion that the parish would have received pursuant to the provisions of
11 Subparagraph (a) of this Paragraph shall instead be remitted as provided in Paragraph
12 (2) of this Subsection, and the remaining portion remitted pursuant to Subparagraph
13 (a) of this Paragraph shall be reduced.
14 (2) Beginning when the commissioner has issued a cannabis retailer permit
15 in every parish in the state and thereafter, the Department of Revenue shall not remit
16 amounts as provided in Paragraph (1) of this Subsection but shall instead remit the
17 amount of two and one half percent of the taxes levied pursuant to this Chapter to the
18 state treasury for deposit into the state general fund and remit the amount of two and
19 one half percent of the taxes levied pursuant to this Chapter to the state treasury for
20 deposit into the Louisiana Early Childhood Education Fund created pursuant to R.S.
21 17:407.30 after compliance with the requirements of Article VII, Section 9(B) of the
22 Constitution of Louisiana relative to the Bond Security and Redemption Fund.
23 C. The Department of Revenue shall divide equally the amount of fifteen
24 percent of the taxes levied pursuant to this Chapter among and remit to the district
25 attorneys' offices in the state.
26 D. The Department of Revenue shall transfer the amount of ten percent of
27 the taxes levied pursuant to this Chapter to the state treasury for deposit into the
28 Louisiana Early Childhood Education Fund created pursuant to R.S. 17:407.30 after
29 compliance with the requirements of Article VII, Section 9(B) of the Constitution of
30 Louisiana relative to the Bond Security and Redemption Fund.
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1 E. The Department of Revenue shall transfer the amount of ten percent of
2 the taxes levied pursuant to this Chapter to the state treasury for deposit into the State
3 Police Operations Fund created pursuant to R.S. 39:100.125 after compliance with
4 the requirements of Article VII, Section 9(B) of the Constitution of Louisiana
5 relative to the Bond Security and Redemption Fund.
6 F. The Department of Revenue shall transfer the amount of fifteen percent
7 of the taxes levied pursuant to this Chapter to the state treasury for deposit into the
8 state general fund after compliance with the requirements of Article VII, Section
9 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption
10 Fund.
11 G. The Department of Revenue shall transfer the amount of fifteen percent
12 of the taxes levied pursuant to this Chapter to the state treasury for deposit into the
13 Transportation Trust Fund created pursuant to Article VII, Section 27 of the
14 Constitution of Louisiana after compliance with the requirements of Article VII,
15 Section 9(B) of the Constitution of Louisiana relative to the Bond Security and
16 Redemption Fund.
17 H. The Department of Revenue shall transfer the amount of ten percent to
18 the state treasury to be used to fund addiction treatment programs.
19 Section 3. This Act shall take effect and become operative if and when the Act
20which originated as House Bill No. 637 of this 2021 Regular Session of the Legislature is
21enacted and becomes effective.
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 692 Original 2021 Regular Session Newell
Abstract: Levies a tax on cannabis and dedicates the avails of the tax.
Proposed law levies a 10% 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.
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HB NO. 692
Proposed law levies a 5% tax upon each cannabis wholesale sale. Defines "cannabis
wholesale sale" as the sale of cannabis by a commercial grower licensee to a retailer or the
sale of a cannabis product by a cannabis processor licensee to a retailer. Provides that the
tax is reported and paid by the commercial grower licensee or cannabis processor licensee,
as applicable.
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 the Dept. of Revenue shall remit the avails of the taxes as
follows:
(1)20% to the municipality in which the sale occurred to be used for law enforcement
in the municipality. However, if the sale did not take place in a municipality, 20%
to the sheriff for the parish in which the sale occurred to be used for law enforcement
in the parish.
(2)(a)5% on a pro rata basis to the sheriffs for each of the parishes that do not include a
cannabis retailer, to be used for law enforcement in the parishes. In Orleans Parish,
the amount is divided equally between and remitted to the sheriff and the New
Orleans Police Department. If a cannabis retailer permit is subsequently granted to
a parish, the pro rata portion that the parish would have received is instead remitted
as provided in paragraph (b) below.
(b)Beginning when the commissioner has issued a cannabis retailer permit in every
parish in the state and thereafter, 7.5% to the state treasury for deposit into the state
general fund and 7.5% to the state treasury for deposit into the La. Early Childhood
Education Fund created pursuant to present law (R.S. 17:407.30).
(3)15% divided equally among and remitted to the district attorneys' offices in the state.
(4)10% to the state treasury for deposit into the La. Early Childhood Education Fund.
(5)10% to the state treasury for deposit into the State Police Operations Fund created
pursuant to proposed law.
(6)15% to the state treasury for deposit into the state general fund.
(7)15% to the state treasury for deposit into the Transportation Trust Fund created
pursuant to present constitution (Art. VII, Sec. 27).
(8)10% to the state treasury to be used to fund addiction treatment programs.
Effective if and when House Bill No. 637 of this 2021 R.S. is enacted and becomes effective.
(Adds R.S. 39:100.125 and R.S. 47:1699.1-1699.5)
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