California Gov. Gavin Newsom has signed SB 34, a bill that eliminates taxes on charitable donations of medical marijuana for sufferers with extreme continual diseases.
Since California legalized using marijuana for medical functions in 1996, not-for-profit compassionate care packages have helped guarantee entry to marijuana for low-income Californians. To help the packages, for-profit cultivators and retailers donated hashish. Donations had been tax-free.
That modified with the passage of Proposition 64, the 2016 poll measure that legalized grownup marijuana use in California. Prop. 64 imposed a broad tax on hashish suppliers and for-profit companies. Swept up within the tax regime had been charitable donations.
Cannabis flowers had been taxed at $9.25 per dry-weight ounce and hashish leaves at $2.75 per dry-weight ounce. The taxes utilized to all hashish, whether or not for donation or sale.
The Dennis Peron and Brownie Mary Act
The Dennis Peron and Brownie Mary Act (SB 34) corrects what its proponents noticed as an overreach of California’s tax-and-regulate mannequin.
Senator Scott Weiner (D-San Francisco) co-authored the invoice, which is the Senator’s second effort. A just about an identical invoice, additionally launched and co-authored by Weiner, was vetoed by former Gov. Jerry Brown in 2018.
Gov. @GavinNewsom signed #SB34, our laws to make sure #cannabis compassion packages – which offer free medical hashish to low revenue sufferers – can survive. These packages are important to the well being of many with #HIV, most cancers, PTSD & different circumstances. Thank you Governor!
— Scott Wiener (@Scott_Wiener) October 13, 2019
“Compassionate care programs aid people who are seriously ill and suffering,” mentioned the Senator in a press release. “And we should be helping them thrive, not squeezing them with business taxes that are forcing many of them to close.”
SB 34 sailed via the House and Senate, with help from pro-marijuana lobbying teams like NORML and the Drug Policy Alliance.
With Gov. Newsom’s signature, SB 34 is regulation. The invoice will grant tax exemptions till 2024.
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