Book Review: Cannabis Taxation

Cannabis Taxation: Federal and State Tax Guidebook from CCH Tax Perspectives

We all know what comes next now that recreational cannabis is legal in California – taxes!  While California has decriminalized cannabis, and San Francisco will even retroactively expunge or reduce marijuana charges en masse, the Federal Government still lists cannabis as an illegal narcotic, leading to patchwork laws and uncertainty.  The Cannabis Taxation: Federal and State Tax Guidebook from CCH Tax Perspectives offers an overview of taxation issues in the burgeoning cannabis industry. This slim guidebook contains analysis of the federal taxation provisions, a state-by-state breakdown of the industry is taxed, and a sample client letter for tax professionals to use to reach out to clients. Tax and cannabis professionals can use this new title together with the Library’s other cannabis law resources, including Marijuana Law in a Nutshell, our Cannabis Law LibGuide, and the new California cannabis regulations.  And take a look at our Cannabis Regulations Reference Sheet below as well.

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Reference Sheet for Cannabis Regulations

From BARCLAYS CALIFORNIA CODE OF REGULATIONS (also available here through Westlaw)

Register 2017, No. 49, dated December 8, 2017:

• Volume 4, Title 3, Division 8 (“Cannabis Cultivation”): Pages 429-459
• Volume 21A, Title 16, Division 42 (“Bureau of Cannabis Control”): Pages 555-601
• Volume 22, Title 17, Division 1, Chapter 13 (“Manufactured Cannabis Safety”): Pages 248.20 – 248.44

Register 2017, No. 52, dated December 29, 2017:

• Volume 23, Title 18 Public Revenues, State Board of Equalization, Business Tax: Chapter 8.7, Cannabis Tax Regulation, §§3700-3701, pp. 205-206

Register 2018, No. 1, dated January 5, 2018:

• Volume 24, Title 18 Public Revenues, Division 4, Office of Tax Appeals, p.521-540 (see page 3 of the Digest of New Regulations for specifics for this new agency)
  • From the Digest:  “The Office of Tax Appeals (OTA) has adopted emergency regulations concerning appeals from actions taken by the Franchise Tax Board (FTB) or the California Department of Tax and Fee Administration (CDTFA). The OTA is an independent body created by the Taxpayer Transparency and Fairness Act of 2017. Its mission is to provide a fair, objective and timely process for appeals by California taxpayers. As of January 1, 2018, the OTA has sole jurisdiction over tax appeals arising from actions taken by the FTB and the CDTFA.”

Also see the 2018 pocket part for WEST’S ANNOTATED CALIFORNIA CODES in the last volume containing the Index for Business & Professions Code (v.5D), Food & Agriculture Code (v.31D) and the Health & Safety Code (v.41I)

• The entry “cannabis” will refer you to “Drugs and Medicine” and within that to “Marijuana”

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New Cannabis Regulations

The first major challenge to cannabis cultivation regulations has just hit California, so you might be curious to check out the regulations for yourself. Luckily, the new California cannabis regulations and the California Code of Regulations Statement of Reasons are available at the San Francisco Law Library.

The vast array of California regulations for the new cannabis retail sales can be daunting to explore, and finding the basis of how these regulations came about is also no easy task. So why not stop by the library and let your trusty SFLL librarians assist you with your cannabis research questions, or any other California Code of Regulations research you need to do? To get you started, take a look below at our Reference Sheet for Cannabis Regulations which lists which volumes you may want to take a look at first when you start with the regs or annotated codes.

For more on cannabis law, visit the Bureau of Cannabis Control’s website, and take a look at our Cannabis Law LibGuide.

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Reference Sheet for Cannabis Regulations

From BARCLAYS CALIFORNIA CODE OF REGULATIONS

Register 2017, No. 49, dated December 8, 2017:

• Volume 4, Title 3, Division 8 (“Cannabis Cultivation”): Pages 429-459
• Volume 21A, Title 16, Division 42 (“Bureau of Cannabis Control”): Pages 555-601
• Volume 22, Title 17, Division 1, Chapter 13 (“Manufactured Cannabis Safety”): Pages 248.20 – 248.44

Register 2017, No. 52, dated December 29, 2017:

• Volume 23, Title 18 Public Revenues, State Board of Equalization, Business Tax: Chapter 8.7, Cannabis Tax Regulation, §§3700-3701, pp. 205-206

Register 2018, No. 1, dated January 5, 2018:

• Volume 24, Title 18 Public Revenues, Division 4, Office of Tax Appeals, p.521-540 (see page 3 of the Digest of New Regulations for specifics for this new agency)
  • From the Digest:  “The Office of Tax Appeals (OTA) has adopted emergency regulations concerning appeals from actions taken by the Franchise Tax Board (FTB) or the California Department of Tax and Fee Administration (CDTFA). The OTA is an independent body created by the Taxpayer Transparency and Fairness Act of 2017. Its mission is to provide a fair, objective and timely process for appeals by California taxpayers. As of January 1, 2018, the OTA has sole jurisdiction over tax appeals arising from actions taken by the FTB and the CDTFA.”

Also see the 2018 pocket part for WEST’S ANNOTATED CALIFORNIA CODES in the last volume containing the Index for Business & Professions Code (v.5D), Food & Agriculture Code (v.31D) and the Health & Safety Code (v.41I)

• The entry “cannabis” will refer you to “Drugs and Medicine” and within that to “Marijuana”

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Related links:

• California Code of Regulations (from Westlaw)
• The Cannifornian

Interesting New 2018 California Laws – Part 2

Of course there are more new laws to look forward to in 2018!  Part 2 includes some of the big ones (cannabis, sanctuary state), as well as laws on education and free rides from beer manufactures.

• Prop. 64/AB 64: Cannabis: licensure and regulation – Californians 21 and over can buy up to one ounce (28.5 grams) of cannabis and 0.28 ounces (8 grams) of concentrates.  See our Cannabis Law LibGuide for more information.
• SB 65: Vehicles: alcohol and marijuana: penalties – Building on Prop 64 and existing law related to alcohol use in vehicles, this bill adds smoking or ingesting marijuana while in a moving vehicle punishable as an infraction.
• SB 64: Law enforcement: sharing data – Subject to exceptions, this “sanctuary state” law prohibits state and local law enforcement agencies from using resources to investigate, interrogate, detain, detect, or arrest people for immigration enforcement purposes, as specified.
• SB 29: Law enforcement: immigration – Now city, county, city and county, or local law enforcement agencies cannot enter into a new contract or renew or modify an existing one with the federal government, a federal agency, or a private corporation for immigration detention centers.
• AB 830: High school exit examination: repeal – Now the high school exit exam is officially repealed as a condition of receiving a diploma or graduation.
• AB 19: Community colleges: California College Promise – This bill establishes the California College Promise which waives fees for one academic year to a community college for eligible first-time students enrolled in 12 or more semester units or the equivalent.
• AB 10: Feminine hygiene products: public school restrooms – Public schools that meet the 40% federal pupil poverty threshold must stock free feminine hygiene products in a percentage of their restrooms.
• SB 575: Patient access to health records – Health care providers will now provide certain low-income patients with a free copy of medical records when they are needed to support a claim for eligibility for a public benefit program (Medi-Cal, CalWORKs and CalFresh, and veterans benefits).
• AB 369: Appeals: child custody orders or judgments – Building on existing law, this bill authorizes that an appeal can be taken from a final order or judgment in a bifurcated proceeding for child custody or visitation rights.
• AB 711: Beer manufacturers: free or discounted rides – Building on the existing Alcoholic Beverage Control Act, beer manufacturers can now provide consumers free or discounted rides in order to further public safety.
• AB 564: Food and agriculture: fruits, nuts, and vegetables: inspections – The Secretary of Food and Agriculture may now enforce and make inspections of grade, standard of quality, and other provisions of raw unprocessed fruit, nut, or vegetable marketing, food safety, or enforcement program.
• AB 646: Rental property: disclosures: flood hazard areas: areas of potential flooding – Owners offering property up for rent on or after July 1, 2018 must disclose to tenants specified flood-related risk information.
• AB 527: Pest control aircraft pilot’s certificate: unmanned aircraft – Someone operating a manned aircraft in pest control must hold a valid manned pest control aircraft pilot’s certificate.  The same applies to an unmanned aircraft.

Interested in even more new laws?  See these articles for more information:

• https://www.sfgate.com/bayarea/article/new-california-laws-going-into-effect-in-2018-12458046.php
• http://www.sacbee.com/news/politics-government/capitol-alert/article191348244.html
• http://www.latimes.com/projects/la-pol-ca-new-2018-laws/

New LibGuide: Cannabis Law

Cannabis Law is a fast growing field, encompassing many aspects of the law including anti-trust issues, intellectual property, environmental law, and more.  To accompany our July Book of the Month, Marijuana Law in a Nutshell, we have a new LibGuide as well: The San Francisco Law Library Guide to Cannabis Law.   This new research guide features information on legislation for both medical and recreational marijuana, resources for attorneys and the community, and the latest news on developments in Cannabis Law.  We will update the Guide regularly so be sure to check in, and don’t forget to take a look at our other research guides too!

July Book of the Month: Marijuana Law in a Nutshell

This book, part of the Nutshell series from West Academic Publishing, is a succinct overview of Marijuana law, both current and historical. The volume discusses in surprising detail the legal history and public policy issues relevant to marijuana law.

This little book provides comprehensive coverage of the evolution of Federal laws governing marijuana along with a synopsis of international, state, and local laws dealing with marijuana litigation. A discussion of the practical issues associated with the current trend of marijuana legalization includes an overview of banking law problems, employment issues, taxation, and impaired driving controversies. Arguments for and against medical and recreational legalization are provided, along with a chapter on how foreign laws approach this subject. This compact title contains an outstanding, in-depth index that either a student or attorney can turn to for reliable guidance.

We highly recommend Marijuana Law in a Nutshell to anyone wanting to learn more about this exciting new emerging law topic.  And for even more information, check out our new research guide on Cannabis Law.

Proposed Cannabis Regulations Now Posted

The California Bureau of Medical Cannabis (BMCR) is the lead agency regulating the cannabis industry in California. Today the BMCR has posted its proposed licensing regulations for medical cannabis and the 45-day public comment period is now underway.

There will also be four public hearings on the proposed regulations. You can review the regulations and come to a hearing near you to provide feedback. The hearings are being held in June in Eureka, LA, Sacramento, and San Jose. For full details, see the BCMR’s Notice of Proposed Rulemaking.

If you can’t attend one of the sessions, you can still get involved by following the steps on this website: http://www.bmcr.ca.gov/about_us/documents/17-065_public_comment.pdf.

If you’re interested in reviewing the medical regulations for licensing dispensaries, distribution, and transporters, you can visit the new Cannabis Web Portal. This new site also has cultivation regulations and manufacturing regulations for medical cannabis.

For more cannabis law info, check in with this blog and stay tuned for a Cannabis LibGuide from the Library. In the meantime, don’t forget to check out the rest of our excellent research guides!