Short article: Cannabis Wire – California: Donated Cannabis Could Get a Tax Break

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Here’s the introduction to their piece

 

A bill on Governor Gavin Newsom’s desk could make it extra inexpensive for cannabis operators to donate cannabis to health-related sufferers. Senate Bill 34 would eliminate state taxes imposed on such donations by the fine print in the law that legalized adult use cannabis 3 years ago.

To clarify: In the early days of health-related cannabis in California, there have been no dispensaries. Sufferers who had a doctor’s recommendation, but lacked funds, frequently received cannabis by way of charitable applications that donated it.

But decades later, the legal framework that accompanied Proposition 64—which voters authorized in 2016 to legalize cannabis for adult use—required all cannabis, irrespective of whether sold for profit or donated, to be taxed the identical, threatening the future of these applications by sticking licensees with a tax bill for their donated goods. In other words, operators are now forced to spend taxes on their donated medicine, building a economic disincentive that has triggered a lot of of these compassionate care applications to shutter.

But a bill that squeaked by way of in the final days of the state’s 2019 legislative session, Senate Bill 34, could reverse that trend if signed by Newsom. The bill would exempt operators from paying state excise taxes, retail taxes, and cultivation taxes, if the cannabis or cannabis solutions are donated to sufferers with valid health-related suggestions. Meanwhile, the donated item would nonetheless make its way by way of the legal track-and-trace program, bringing with it the identical testing and packaging specifications as for-profit cannabis.

Complete report:  https://cannabiswire.com/2019/09/23/california-donated-cannabis-may possibly-get-a-tax-break/

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