New legislation to regulate the Cannabis Industry to be effective on January 1

New tax laws, effective January 1, 2016, enhance the California State Board of Equalization’s ability to protect taxpayers and allow for ongoing administration of taxes that help pay for important state and local services such a public safety, education, and transportation.
Assembly Bill AB 266 requires the BOE to adopt a commercial cannabis and cannabis products distribution tracking system. This will assist in the BOE’s current role of sales and use tax collection at the dispensary level, and if excise taxes are later added at the state and local levels. This law establishes a comprehensive statewide regulatory framework for commercial medical cannabis activity to protect patients, promote public safety, and further enhance compliance with state laws in the medical cannabis industry.
AB 243 and Senate Bill 643 provide further licensure and regulation in the industry. The BOE will work with the Departments of Consumer Affairs, Food and Agriculture, Public Health, and other state agencies as these laws are implemented and effective January 1, 2016.
Other notable bills that affect taxpayers:
AB 160 removes the sale for resale exclusion for tangible personal property sold or purchased with counterfeit or illicit labeling by persons convicted of a counterfeiting offense. This will bar illegal operators in our state’s underground economy from enjoying a tax benefit that is otherwise available to legitimate businesses.
AB 301 requires Cal Fire to notify fire prevention fee payers that when a property subject to the fee is sold, the fee can be apportioned between the parties as a condition of the sale.
AB 401 requires the BOE, in collaboration with the State Water Resources Control Board, to develop a Low-Income Water Rate Assistance Program funding and implementation plan.
AB 1717, which was signed into law in 2014, takes effect January 1, 2016. Under this new law, consumers purchasing prepaid wireless services will pay a new surcharge similar to the taxes and fees paid by consumers of postpaid, or contract, wireless services.
The law requires sellers of prepaid wireless services to collect the new surcharge from their customers. At the point of sale, all consumers of prepaid wireless services will pay a statewide minimum of 9.26 percent of the sales price. That rate will be higher in areas where a local government has imposed its own taxes or charges. Consumers will see the charges on their receipt. For more information, read the BOE’s Prepaid MTS Surcharge Guide or visit the CPUC Web page.
For a complete list of BOE-sponsored legislation enacted in 2015, visit http://www.boe.ca.gov/legdiv/legcont.htm#Legislation