A number of states may feature marijuana legalization initiatives on their ballots for the elections this November. However, the push for pot is also occurring in some states’ legislatures. In particular, efforts have made significant strides in the Pennsylvania legislature recently.
On April 12, the Pennsylvania Senate passed S.B. 3, which would legalize and regulate medical marijuana; the bill was referred to the House Rules Committee on April 13. First introduced early last year, S.B. 3 would establish a medical marijuana program dispensing the substance in specific forms, including pills, oil, topical applications and liquid. Patients would not be able to smoke it, unless the Medical Marijuana Advisory Board (also a creation of the bill) decides otherwise.
S.B. 3 proposes a 5 percent gross receipts tax on sales between growers/producers and dispensaries. The taxes would be due quarterly.
Growers and dispensaries would need to get permits before opening up for business. There are proposed capital requirements; growers must prove that they have at least $2 million in capital, and dispensaries must have at least $150,000 in capital under the program. Applicants would also pay fees for these licenses. The fees would be as follows:
• $10,000 nonrefundable application fee
• $200,000 permit fee (valid for one year)
• $10,000 renewal fee
• $5,000 nonrefundable application fee
• $30,000 permit fee (valid for one year)
• $5,000 renewal fee
• $250 relocation fee
Pennsylvania Gov. Tom Wolf (D) responded positively to this legislative activity. In a press release issued April 12, he stated that “[i]t is finally time to provide long overdue medical relief to patients and families who could benefit from the legalization of medical marijuana.”
If the House passes the bill and Wolf approves it, it will be effective 30 days after the governor signs the legislation.
According to a 2015 Marijuana Policy Project report, 12 of the states that legalized medical cannabis did so via state legislatures; the other half legalized the substance through ballot initiatives. Pennsylvania could become the 25th jurisdiction to legalize medical marijuana if S.B. 3 is successful.
Continue the discussion on Bloomberg BNA’s State Tax Group on LinkedIn: Do you think that the prospective Pennsylvania pot program is good policy?
For more information about this and other state tax issues, sign up for a free trial of the Bloomberg BNA Premier State tax Library.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)