The California Secretary of State recently launched a new online portal, cannabizfile, for those interested in establishing a cannabis-related business. You will find information on topics including registering your business, trademark, or service mark; searching for business records; licensing; and registering and paying taxes with various state agencies.
On Tuesday, June 27, 2017, California Governor Jerry Brown signed into law the Taxpayer Transparency and Fairness Act of 2017. Sweeping changes to the administration of taxes and fees formerly administered by the Board of Equalization take effect on July 1, 2017. A new Office of Tax Appeals will begin hearing tax appeals of California income tax, sales tax, use tax, hazardous waste fees, and other taxes and fees effective January 1, 2018. The rules and regulations that will govern the two newly created state agencies remain a work in progress. For more information, click here.
If Congressman Jim Sensenbrenner (R-WI) and House Judiciary Chairman Bob Goolatte (R-VA) get their way, it will. On June 12, 2016, Sensenbrenner and Goolatte introduced the "No Regulation Without Representation Act of 2017" which would expand the "physical presence" requirement of a similar 2016 House Bill (H.R. 5893) to all taxes and to all regulations in general.
As of January 1st, your dollar will go a little further as California reduces its sales tax rate by 0.25%. Actual sales tax rates vary by county and city. To look up the current sales tax rate where you live, click here.
The temporary statewide sales and use tax increase approved through California's Proposition 30 expires on December 31, 2016. Effective January 1, 2017, the state sales and use tax rate in California will decrease by 0.25% to the new rate of 7.25%. The California State Board of Equalization notes, however, that in many cities and counties the total tax rate will be higher due to local voter-approved district taxes.
The California Board of Equalization (BOE) will update sales and use tax rates effective October 1, 2016, in the following cities:
Taxation can be a touchy subject, especially when it comes to personal items. Consumers in California currently pay over $20 million each year in taxes on tampons and sanitary napkins alone, which some lawmakers say are necessary health items for women. The state Assembly approved a bill this week that would make these products exempt from sales and use tax in California, arguing that the taxation of such items creates a penalty to women.
Not surprisingly, a recent declaratory action has challenged South Dakota's bold move to require many out-of-state sellers to register with the state and begin collecting sales tax (previously discussed here). American Catalog Mailers Associations and NetChoice v. Gerlach questions the constitutionality of the economic nexus legislation based upon the physical presence rule from Quill Corp. v. North Dakota.
Recently, Forbes magazine named South Dakota as one of the top 10 states for business, particularly since it ranked number one in the cost of doing business. A new state law will likely keep South Dakota in first place for in-state business statistics, to the detriment of out-of-state sellers. Last month, South Dakota Governor Dennis Daugaard signed into law a bill that requires many out-of-state sellers to register with the state and begin collecting sales tax. All sellers conducting more than 200 transactions with South Dakota purchasers, or making more than $100,000 in gross sales to South Dakota, must register with the state.
Medical marijuana use was authorized in the state of California by the Compassionate Use Act of 1996 which provided guidelines for individuals and businesses to cultivate, use, and distribute cannabis within California. This Act did not "legalize" medical marijuana, but instead legislated the absence of punishment for specific marijuana-related offenses under state law. All activities related to marijuana of any kind continue to be an offense at the federal level.