BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 987 (McGuire) - Taxation: medical marijuana: Marijuana
Value Tax Act
-----------------------------------------------------------------
| |
| |
| |
-----------------------------------------------------------------
|--------------------------------+--------------------------------|
| | |
|Version: March 15, 2016 |Policy Vote: GOV. & F. 5 - 1 |
| | |
|--------------------------------+--------------------------------|
| | |
|Urgency: No |Mandate: Yes |
| | |
|--------------------------------+--------------------------------|
| | |
|Hearing Date: May 27, 2016 |Consultant: Robert Ingenito |
| | |
-----------------------------------------------------------------
Bill
Summary: SB 987 would impose a 15 percent excise tax on medical
marijuana.
*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 27, 2016
Fiscal
Impact:
The Board of Equalization (BOE) estimates that the bill
would result in a revenue increase of $126 million in
2017-18, and $251 million annually thereafter. However,
because of the nature of this market, the assumptions used
to develop these estimates are subject to considerable
uncertainty (see Staff Comments).
BOE indicates that it would incur administrative costs
SB 987 (McGuire) Page 1 of
?
of $3.1 million in 2016-17, $5.4 million in 2017-18, $5.1
million for FY 2018-19, and $4.8 million in the out-years
to implement the provisions of the bill.
Author
Amendments: Reimburse BOE for upfront costs, and make technical
changes.
-- END --