Dear Marijuana Producers, Processors and Retailers,
You may be aware that over the weekend the Legislature passed HB 2136 and delivered the bill to the Governor for action. The Governor has not yet acted on the bill. HB 2136 modifies I-502 in several areas. Most immediately, however, the bill changes how marijuana taxes are collected and paid.
Should the Governor sign the bill into law, effective July 1, 2015, producers and processors will no longer need to collect and pay the 25 percent excise tax. Instead, retailers will begin collecting a 37 percent excise tax levied on the buyer.
Special Notice for Producers and Processors
Your tax obligation will be determined by the date the inventory was transferred, not the date the manifest was generated. All transfers initiated prior to July 1, 2015 are subject to 25 percent excise tax. All transfers initiated July 1, 2015 or later will not be subject to excise tax.
Special Notice for Retailers
Effective July 1, 2015, new functionality in the traceability system will handle the new tax rate as well as calculating the tax as a buyers’ tax rather than a sellers’ tax. It’s important to remember that it’s not just a rate change, it’s a complete change in how the tax is calculated (buyer tax vs. seller tax).
The LCB will follow with additional communication once the Governor takes action. If signed into law, the LCB will provide additional details to help retailers comply with the law change.
Thank you for your attention to this important matter.