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2018 HB 5582: An Act Concerning The Taxation Of Marijuana And Marijuana Products Sold In The State.
Bill Text
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Subdivision (1) of section 12-408 of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(1) (A) For the privilege of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407, as amended by this act, at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the rate of six and thirty-five-hundredths per cent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail or from the rendering of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, as amended by this act, except, in lieu of said rate, of six and thirty-five-hundredths per cent, the rates provided in subparagraphs (B) to (H), inclusive, of this subdivision;
(B) (i) At a rate of fifteen per cent with respect to each transfer of occupancy, from the total amount of rent received by a hotel or lodging house for the first period not exceeding thirty consecutive calendar days;
(ii) At a rate of eleven per cent with respect to each transfer of occupancy, from the total amount of rent received by a bed and breakfast establishment for the first period not exceeding thirty consecutive calendar days;
(C) With respect to the sale of a motor vehicle to any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse thereof, at a rate of four and one-half per cent of the gross receipts of any retailer from such sales, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574;
(D) (i) With respect to the sales of computer and data processing services occurring on or after July 1, 2000, and prior to July 1, 2001, at the rate of two per cent, on or after July 1, 2001, at the rate of one per cent, and (ii) with respect to sales of Internet access services, on and after July 1, 2001, such services shall be exempt from such tax;
(E) (i) With respect to the sales of labor that is otherwise taxable under subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407, as amended by this act, on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax;
(ii) With respect to the sale of a vessel, such sale shall be exempt from such tax provided such vessel is docked in this state for sixty or fewer days in a calendar year;
(F) With respect to patient care services for which payment is received by the hospital on or after July 1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such services shall be exempt from such tax;
(G) With respect to the rental or leasing of a passenger motor vehicle for a period of thirty consecutive calendar days or less, at a rate of nine and thirty-five-hundredths per cent;
(H) With respect to the sale of (i) a motor vehicle for a sales price exceeding fifty thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, (ii) jewelry, whether real or imitation, for a sales price exceeding five thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, and (iii) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price exceeding one thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price. For purposes of this subparagraph, "motor vehicle" has the meaning provided in section 14-1, but does not include a motor vehicle subject to the provisions of subparagraph (C) of this subdivision, a motor vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more specific type of registration by the Department of Motor Vehicles;
(I) The rate of tax imposed by this chapter shall be applicable to all retail sales upon the effective date of such rate, except that a new rate which represents an increase in the rate applicable to the sale shall not apply to any sales transaction wherein a binding sales contract without an escalator clause has been entered into prior to the effective date of the new rate and delivery is made within ninety days after the effective date of the new rate. For the purposes of payment of the tax imposed under this section, any retailer of services taxable under subparagraph (I) of subdivision (2) subdivision (37) of subsection (a) of section 12-407, as amended by this act, who computes taxable income, for purposes of taxation under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, amended, on an accounting basis which recognizes only cash or other valuable consideration actually received as income and who is liable for such tax only due to the rendering of such services may make payments related to such tax for the period during which such income is received, without penalty or interest, without regard to when such service is rendered;
(J) (i) For calendar quarters ending on or after September 30, 2019, the commissioner shall deposit into the regional planning incentive account , established pursuant to section 4-66k , six and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and ten and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision;
(ii) For calendar quarters ending on or after September 30, 2018, the commissioner shall deposit into the Tourism Fund established under section 10-395b ten per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision;
(K) For calendar months commencing on or after July 1, 2019, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision; and
(L) (i) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;
(ii) For calendar months commencing on or after July 1, 2020, but prior to July 1, 2021, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 twenty per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;
(iii) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 forty per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;
(iv) For calendar months commencing on or after July 1, 2022, but prior to July 1, 2023, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 sixty per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;
(v) For calendar months commencing on or after July 1, 2023, but prior to July 1, 2024, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eighty per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle; and
(vi) For calendar months commencing on or after July 1, 2024, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 one hundred per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle; . and
Sec. 2. (NEW) (Effective from passage) (a) As used in this section:
(1) "Marijuana cultivation facility" means a facility licensed to cultivate, prepare and package marijuana and sell marijuana to marijuana product manufacturing facilities, marijuana wholesalers and other marijuana cultivation facilities;
(2) "Marijuana product manufacturing facility" means a facility licensed to purchase marijuana from marijuana cultivation facilities, manufacture, prepare and package marijuana products and sell marijuana and marijuana products to marijuana wholesalers;
(3) "Marijuana wholesaler" means a person residing or located in this state and licensed to purchase marijuana or marijuana products from a marijuana cultivation facility or marijuana product manufacturing facility and sell marijuana or marijuana products to a marijuana lounge or marijuana retailer.
(4) "Marijuana" has the same meaning as provided in section 21a-240 of the general statutes;
(5) "Marijuana product" has the same meaning as provided in section 12-407 of the general statutes, as amended by this act;
(6) "Marijuana lounge" has the same meaning as provided in section 12-407 of the general statutes, as amended by this act;
(7) "Marijuana retailer" has the same meaning as provided in section 12-407 of the general statutes, as amended by this act; and
(8) "First sale of marijuana" means the sale of marijuana by a marijuana wholesaler to a marijuana lounge or marijuana retailer in this state.
(b) On and after the date the retail sale of marijuana or marijuana products is authorized in the state, each marijuana wholesaler shall pay a tax to the state on the first sale of marijuana at the rate of thirteen and sixty-five-hundredths per cent of the contract price agreed upon by the marijuana wholesaler and the marijuana lounge or marijuana retailer. The Commissioner of Revenue Services shall prescribe the form and manner of the remittance of such tax and any return filing the commissioner deems necessary. The tax imposed under this section shall not apply to marijuana sold or transferred by a licensed producer to a licensed dispensary pursuant to chapter 420f of the general statutes.
(c) Any tax due and unpaid under this section shall be subject to the penalties and interest established in section 12-547 of the general statutes and the amount of such tax, penalty or interest, due and unpaid, may be collected under the provisions of section 12-35 of the general statutes.
(d) The provisions of sections 12-548 and 12-550 to 12-555b, inclusive, of the general statutes shall apply to the provisions of this section in the same manner and with the same force and effect as if the language of said sections had been incorporated in full into this section and had expressly referred to the tax imposed under this section, except to the extent that any such provision is inconsistent with a provision of this section.
Sec. 3. (NEW) (Effective from passage) On and after the date the retail sale of marijuana or marijuana products is authorized in the state, there is established an account to be known as the "municipal diversification account" which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Moneys in the account shall be disbursed, in accordance with a distribution formula determined by the Commissioner of Revenue Services, to each town in which a marijuana cultivation facility, marijuana product manufacturing facility, marijuana wholesaler, marijuana lounge or marijuana retailer is located or resides. As used in this section, "marijuana cultivation facility", "marijuana product manufacturing facility" and "marijuana wholesaler" have the same meanings as provided in section 2 of this act, and "marijuana lounge" and "marijuana retailer" have the same meanings as provided in section 12-407 of the general statutes, as amended by this act.
Sec. 4. (NEW) (Effective from passage) As part of any licensure requirements for the sale of marijuana or marijuana products by a marijuana wholesaler, marijuana lounge or marijuana retailer, the Commissioner of Consumer Protection, in consultation with the Commissioner of Revenue Services, shall issue and renew permits to persons seeking to engage in or transact business as a wholesaler or retail seller of marijuana or marijuana products within this state. The provisions of section 12-409 of the general statutes shall apply to any such permit issued or renewed. As used in this section, (1) "marijuana" has the same meaning as provided in section 21a-240 of the general statutes, (2) "marijuana product", "marijuana lounge" and "marijuana retailer" have the same meanings as provided in section 12-407 of the general statutes, as amended by this act, and (3) "marijuana wholesaler" has the same meaning as provided in section 2 of this act.
Sec. 5. Subsection (a) of section 12-407 of the 2018 supplement to the general statutes is amended by adding subdivisions (43) to (48), inclusive, as follows (Effective from passage):
(NEW) (43) "Marijuana" has the same meaning as provided in section 21a-240 of the general statutes.
(NEW) (44) "Marijuana product" means a product that is comprised of marijuana or marijuana concentrates and other ingredients and is intended for use or consumption, including, but not limited to, edible products and ointments.
(NEW) (45) "Marijuana concentrate" includes tinctures and extracts.
(NEW) (46) "Marijuana lounge" means premises licensed to purchase marijuana and marijuana products from marijuana wholesalers and sell marijuana or marijuana products to consumers solely for on-site consumption.
(NEW) (47) "Marijuana retailer" means a person licensed to purchase marijuana and marijuana products from marijuana wholesalers and sell marijuana and marijuana products to consumers.
(NEW) (48) "Marijuana wholesaler" has the same meaning as provided in section 2 of this act.
Sec. 6. Subdivision (120) of section 12-412 of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(120) On and after April 1, 2015, sales Sales of the following nonprescription drugs or medicines available for purchase for use in or on the body: Vitamin or mineral concentrates; dietary supplements; natural or herbal drugs or medicines, including marijuana sold pursuant to section 21a-408d by a licensed dispensary for palliative use, as defined in section 21a-408, as amended by this act; products intended to be taken for coughs, cold, asthma or allergies, or antihistamines; laxatives; antidiarrheal medicines; analgesics; antibiotic, antibacterial, antiviral and antifungal medicines; antiseptics; astringents; anesthetics; steroidal medicines; anthelmintics; emetics and antiemetics; antacids; and any medication prepared to be used in the eyes, ears or nose. Nonprescription drugs or medicines shall not include cosmetics, dentrifrices dentifrices, mouthwash, shaving and hair care products, soaps or deodorants.
To provide for the taxation of marijuana and marijuana products on and after the date the retail sale of marijuana or marijuana products is authorized in the state.