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 --