Laws, Regulations and Annotations
Business Taxes Law Guide – Revision 2023
Cannabis Tax Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 14.5. Cannabis Tax
34013. Administration. (a) The department shall administer and collect the taxes imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) ). For purposes of this part, the references in the Fee Collection Procedures Law to "fee" shall include the taxes imposed by this part, and references to "feepayer" shall include a person required to pay or collect the taxes imposed by this part.
(b) (1) A person licensed to engage in commercial cannabis activity under Division 10 (commencing with Section 26000) of the Business and Professions Code that failed to remit amounts due by means of electronic funds transfer on and after January 1, 2022, and before January 1, 2023, is not subject to or is relieved of any of the penalties imposed by Section 55050 for that failure.
(2) On or after January 1, 2022, subdivision (a) of Section 55050 shall not apply to a person required to pay or collect the taxes imposed by this part on a person licensed to engage in commercial cannabis activity under Division 10 (commencing with Section 26000) of the Business and Professions Code if the department deems it necessary to facilitate the collection of amounts due.
(c) The department may prescribe, adopt, and enforce regulations relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
(d) The department shall adopt necessary rules and regulations to administer the taxes in this part. Such rules and regulations may include methods or procedures to tag cannabis or cannabis products, or the packages thereof, to designate prior tax payment.
(e) Until January 1, 2024, the department may prescribe, adopt, and enforce any emergency regulations as necessary to implement, administer, and enforce its duties under this division. Any emergency regulation prescribed, adopted, or enforced pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare. Notwithstanding any other law, the emergency regulations adopted by the department may remain in effect for two years from adoption, and may be readopted in accordance with subdivision (h) of Section 11346.1 of the Government Code.
(f) Any person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code who fails to pay the taxes imposed under this part shall, in addition to owing the taxes not paid, be subject to a penalty of at least one-half the amount of the taxes not paid, and shall be subject to having its license revoked pursuant to Section 26031 of the Business and Professions Code.
(g) The department may bring such legal actions as are necessary to collect any deficiency in the tax required to be paid, and, upon the department's request, the Attorney General shall bring the actions.
History—Added by Proposition 64, approved by voters at the November 8, 2016 election, in effect November 9, 2016. Stats. 2017, Ch. 27 (SB 94), in effect June 27, 2017, substituted "cannabis" for "marijuana" throughout; deleted "of Division 2)" after "(commencing with Section 55001)" in the first sentence, and substituted "taxes" for "tax" throughout the second sentence, of subdivision (a); substituted "Until January 1, 2019, the" for "The" before "board may prescribe" and substituted "administer," for "administer" in the first sentence of subdivision (d); added "required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code" after "Any person" and deleted "Code or pursuant to Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code" after "Section 26031 of the Business and Professions Code" in subdivision (e). Stats. 2018, Ch. 228 (AB 1741), in effect August 28, 2018, substituted "department" for "board" throughout section; added subdivision (b), redesignated former paragraphs (b) – (f) as (c) – (g); and deleted "provision of" after "Notwithstanding any other" in the last sentence of subdivision (e). Stats. 2022, Ch. 56 (AB 195), in effect June 30, 2022, added paragraph (1) and redesignated former subdivision (b) as paragraph (2) in redesignated subdivision (b); substituted "2024" for "2019" after "Until January 1," in the first sentence and added ",and may be … of the Government Code" after "two years from adoption" in the last sentence of subdivision (e). Stats. 2022, Ch. 474 (SB 1496), in effect January 1, 2023, substituted "January 1, 2023," for "the operative date of the act adding this paragraph" after ", and before" in paragraph (1) and substituted "On or after" for "Until" before "January 1, 2022" in paragraph (2) of subdivision (b).