California 2023-2024 Regular Session Status: Passed Senate

SB 512 — Cannabis: taxation: gross receipts.

Last action — July 10 hearing. Held in committee and under submission.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2023-2024 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) , an initiative measure, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) , among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. Existing law, the Cannabis Tax Law, imposes an excise tax upon purchasers of cannabis or cannabis products sold in this state at the rate of 15% of the gross receipts of any retail sale by a cannabis retailer, and prior to July 1, 2022, a cultivation tax on all harvested cannabis that entered the commercial market, as specified. Existing law provides that taxes imposed under the Cannabis Tax Law are in addition to any other tax imposed by a city or county. Existing law defines "gross receipts" for purposes of the Cannabis Tax Law as it is defined under the Sales and Use Tax Law. Existing sales and use tax laws impose taxes on retailers measured by gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, measured by sales price. The Sales and Use Tax Law defines the term "gross receipts" for these purposes to mean the total amount of the sale or lease or rental price of the retail sales of retailers, valued in money, whether received in money or otherwise, as specified, unless an exclusion applies. The Sales and Use Tax Law defines the term "sales price" for these purposes to mean the total amount for which tangible personal property is sold or leased or rented, valued in money, whether received in money or otherwise, as specified, unless an exclusion applies. This bill, beginning January 1, 2024, would exclude from the terms "gross receipts" and "sales price" under the Sales and Use Tax Law the amount of the cannabis excise tax imposed under the Cannabis Tax Law and the amount of any tax imposed by a city or county on the privilege of engaging in commercial cannabis activity, as specified. The bill would also prohibit a city or county from including in the definition of gross receipts, for purposes of any local tax or fee on a licensed cannabis retailer the amount of any cannabis excise tax imposed under the Cannabis Tax Law or any sales and use taxes. By imposing new requirements on local governments with respect to their taxes and fees, the bill would impose a state-mandated local program. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. AUMA authorizes legislative amendment of its provisions with a 23 vote of both houses, without submission to the voters, to further its purposes and intent. This bill would declare that its provisions further the purposes and intent of AUMA. This bill would take effect immediately as a tax levy.

Bill Text

Action History

  1. July 10 hearing. Held in committee and under submission.

  2. July 10 set for first hearing. Placed on suspense file.

  3. Referred to Com. on REV. & TAX.

  4. In Assembly. Read first time. Held at Desk.

  5. Read third time. Passed. (Ayes 33. Noes 1. Page 1353.) Ordered to the Assembly.

  6. Read second time. Ordered to third reading.

  7. From committee: Do pass. (Ayes 7. Noes 0. Page 1173.) (May 18).

  8. Set for hearing May 18.

  9. May 15 hearing: Placed on APPR suspense file.

  10. Set for hearing May 15.

  11. From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0. Page 1043.) (May 10). Re-referred to Com. on APPR.

  12. Set for hearing May 10.

  13. From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F.

  14. May 3 set for first hearing. Failed passage in committee. (Ayes 4. Noes 0. Page 993.) Reconsideration granted.

  15. Set for hearing May 3.

  16. Re-referred to Com. on GOV. & F.

  17. From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  18. Referred to Com. on RLS.

  19. From printer. May be acted upon on or after March 17.

  20. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Bradford · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 1 voted No

Sponsors (1)

  • Bradford

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

3rd Reading

Passed 33 Yea · 1 Nay · 6 Other
Party YeaNayPresentNot Voting
Unaffiliated 10001
Democratic 20101
Republican 3004
Total 33106
% of votes cast 83%3%0%15%
How each member voted (40)
Member Party Vote
Roth — Yea
Atkins — Yea
Portantino — Yea
Newman — Yea
Min — Yea
Wilk — Yea
Eggman — Yea
Dodd — Yea
Bradford — Yea
Skinner — Yea
Glazer — Not Voting
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Ashby, Angelique V. Democratic Yea
Becker, Josh Democratic Yea
Blakespear, Catherine S. Democratic Yea
Caballero, Anna M. Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Gonzalez, Lena A. Democratic Yea
Hurtado, Melissa Democratic Nay
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
Menjivar, Caroline Democratic Yea
Nguyen, Stephanie Democratic Not Voting
Padilla, Stephen C. Democratic Yea
Rubio, Susan Democratic Yea
Smallwood-Cuevas, Lola Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wahab, Aisha Democratic Yea
Wiener, Scott D. Democratic Yea
Alvarado-Gil, Marie Republican Not Voting
Dahle, Megan Republican Not Voting
Grove, Shannon Republican Not Voting
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Not Voting
Ochoa Bogh, Rosilicie Republican Yea
Seyarto, Kelly Republican Yea

Official roll call →

Do pass, but first be re-referred to the Committee on [Appropriations]

Passed 6 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Democratic 4000
Republican 1001
Unaffiliated 1001
Total 6002
% of votes cast 75%0%0%25%
How each member voted (8)
Member Party Vote
Skinner — Yea
Glazer — Not Voting
Blakespear, Catherine S. Democratic Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Not Voting
Seyarto, Kelly Republican Yea

Official roll call →

[First] hearing set for [05-03-2023]: Failed passage in Committee. Reconsideration granted

Passed 7 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Republican 2000
Unaffiliated 2000
Democratic 3001
Total 7001
% of votes cast 88%0%0%13%
How each member voted (8)
Member Party Vote
Glazer — Yea
Skinner — Yea
Blakespear, Catherine S. Democratic Not Voting
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Yea
Seyarto, Kelly Republican Yea

Official roll call →

Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]

Failed 4 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Democratic 3001
Unaffiliated 1001
Republican 0002
Total 4004
% of votes cast 50%0%0%50%
How each member voted (8)
Member Party Vote
Skinner — Yea
Glazer — Not Voting
Blakespear, Catherine S. Democratic Not Voting
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Not Voting
Seyarto, Kelly Republican Not Voting

Official roll call →

Subjects

taxation
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Frequently asked questions

What does SB 512 do?
The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) , an initiative measure, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) , among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. Existing law, the Cannabis Tax Law, imposes an excise tax upon purchasers of cannabis or cannabis products sold in this state at the rate of 15% of the gross receipts of any retail sale by a cannabis retailer, and prior to July 1, 2022, a cultivation tax on all harvested cannabis that entered the commercial market, as specified. Existing law provides that taxes imposed under the Cannabis Tax Law are in addition to any other tax imposed by a city or county. Existing law defines "gross receipts" for purposes of the Cannabis Tax Law as it is defined under the Sales and Use Tax Law. Existing sales and use tax laws impose taxes on retailers measured by gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, measured by sales price. The Sales and Use Tax Law defines the term "gross receipts" for these purposes to mean the total amount of the sale or lease or rental price of the retail sales of retailers, valued in money, whether received in money or otherwise, as specified, unless an exclusion applies. The Sales and Use Tax Law defines the term "sales price" for these purposes to mean the total amount for which tangible personal property is sold or leased or rented, valued in money, whether received in money or otherwise, as specified, unless an exclusion applies. This bill, beginning January 1, 2024, would exclude from the terms "gross receipts" and "sales price" under the Sales and Use Tax Law the amount of the cannabis excise tax imposed under the Cannabis Tax Law and the amount of any tax imposed by a city or county on the privilege of engaging in commercial cannabis activity, as specified. The bill would also prohibit a city or county from including in the definition of gross receipts, for purposes of any local tax or fee on a licensed cannabis retailer the amount of any cannabis excise tax imposed under the Cannabis Tax Law or any sales and use taxes. By imposing new requirements on local governments with respect to their taxes and fees, the bill would impose a state-mandated local program. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. AUMA authorizes legislative amendment of its provisions with a 23 vote of both houses, without submission to the voters, to further its purposes and intent. This bill would declare that its provisions further the purposes and intent of AUMA. This bill would take effect immediately as a tax levy.
Who sponsors SB 512?
SB 512 is sponsored by Bradford.
What is the current status of SB 512?
This bill died with 2023-2024 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 512?
Track SB 512 free on One Click Politics — get push/email alerts when it moves.

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