- Section 5. Title 42, Chapter 5, Arizona Revised Statutes, is amended by adding article 10 to read:
- Section 6. Title 43, Chapter 1, article 1, Arizona Revised Statutes, is amended by adding Section 43-108 to read:
- Section 7. Voter Protection Act
- Section 8. Exemption from rulemaking
- Section 9. Severability
Section 5. Title 42, Chapter 5, Arizona Revised Statutes, is amended by adding article 10 to read:
MARIJUANA AND MARIJUANA PRODUCTS
IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:
1. “CONSUMER,” “DUAL LICENSEE,” “MARIJUANA,” “MARIJUANA ESTABLISHMENT” AND “MARIJUANA PRODUCTS” HAVE THE SAME MEANINGS PRESCRIBED IN SECTION 36-2850.
2. “DESIGNATED CAREGIVER,” “NONPROFIT MEDICAL MARIJUANA DISPENSARY” AND “QUALIFYING PATIENT” HAVE THE SAME MEANINGS PRESCRIBED IN SECTION 36-2801.
42-5452. Levy and rate of tax: effect of federal excise tax
A. THERE IS LEVIED AND THE DEPARTMENT SHALL COLLECT AN EXCISE TAX ON ALL MARIJUANA
AND MARIJUANA PRODUCTS SOLD TO A CONSUMER BY A MARITUANA ESTABLISHMENT AT A RATE OF SIXTEEN PERCENT OF THE PRICE OF THE MARIJUANA OR MARIJUANA PRODUCT SOLD. THIS SUBSECTION DOES NOT APPLY TO MARIJUANA DISPENSED TO A REGISTERED QUALIFYING PATIENT OR REGISTERED DESIGNATED CAREGIVER PURSUANT TO TITLE 36, CHAPTER 28.1 BY A DUAL LICENSEE OR NONPROFIT MEDICAL, MARIJUANA DISPENSARY.
B. IF THE UNITED STATES LEVIES AND COLLECTS AN EXCISE TAX ON MARIJUANA AND MARIJUANA
PRODUCTS, THE AGGREGATE OF FEDERAL AND STATE EXCISE TAXES MAY NOT EXCEED A RATE OF THIRTY PERCENT OF THE PRICE OF THE MARIJUANA OR MARIJUANA PRODUCT SOLD, AND THE TAX LEVIED PURSUANT TO SUBSECTION A OF THIS SECTION SHALL BE LOWERED ACCORDINGLY AND AUTOMATICALLY ON THE EFFECTIVE DATE OF THE FEDERAL EXCISE TAX.
C. A PRODUCT SUBJECT TO THE TAX IMPOSED BY THIS SECTION MAY NOT BE BUNDLED WITH A
PRODUCT OR SERVICE THAT IS NOT SUBJECT TO THE TAX IMPOSED BY THIS SECTION.
D. THE TAX LEVIED AND COLLECTED PURSUANT TO THIS SECTION SHALL NOT BE INCLUDED IN COMPUTING THE TAX BASE, GROSS PROCEEDS OF SALES OR GROSS INCOME OF A MARIJUANA ESTABLISHMENT FOR PURPOSES OF TITLE 42, CHAPTERS 5 AND 6, AND IS NOT SUBJECT TO ANY TRANSACTION PRIVILEGE, SALES, USE OR OTHER SIMILAR TAX LEVIED BY A COUNTY, CITY, TOWN OR SPECIAL TAXING DISTRICT.
E. NOTWITHSTANDING SECTION 42-3102, THE DEPARTMENT SHALL DEPOSIT ALL MONIES LEVIED
AND COLLECTED PURSUANT TO THIS SECTION IN THE SMART AND SAFE ARIZONA FUND ESTABLISHED BY SECTION 36-2856.
42-5453. Return statement and payment by marijuana establishment: penalty: interest; rules; confidential information
A. THE TAX IMPOSED BY THIS ARTICLE IS DUE AND PAYABLE, TOGETHER WITH A RETURN STATEMENT PRESCRIBED BY THE DEPARTMENT, FOR EACH MONTH ON OR BEFORE THE TWENTIETH DAY OF THE SUCCEEDING MONTH.
B. A MARIJUANA ESTABLISHMENT THAT FAILS TO PAY THE TAX IMPOSED BY THIS ARTICLE WITHIN
TEN DAYS AFTER THE DATE THE PAYMENT IS DUE IS SUBJECT TO AND SHALL PAY A PENALTY DETERMINED UNDER SECTION 42-1125, PLUS INTEREST AT THE RATE DETERMINED PURSUANT TO SECTION 42-1123, FROM THE TIME THE TAX WAS DUE AND PAYABLE UNTIL PAID. THE DEPARTMENT MAY WAIVE ANY PENALTY OR INTEREST IF IT DETERMINES THAT THE MARIJUANA ESTABLISHMENT HAS MADE A GOOD FAITH ATTEMPT TO COMPLY WITH THE REQUIREMENTS OF THIS ARTICLE.
C. THE MONTHLY RETURN STATEMENT PRESCRIBED BY THE DEPARTMENT SHALL INCLUDE AN
ACCOUNTING OF THE QUANTITY OF MARIJUANA THAT IS SOLD BY A MARIJUANA ESTABLISHMENT THAT IS SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE DURING THE TAX MONTH.
D. ALL PENALTIES AND INTEREST COLLECTED PURSUANT TO THIS SECTION SHALL BE DEPOSITED
IN THE SMART AND SAFE ARIZONA FUND ESTABLISHED BY SECTION 36-2856.
E. THE DEPARTMENT MAY ADOPT RULES THAT ARE NECESSARY OR CONVENIENT TO ENFORCE
THIS ARTICLE, EXCEPT THAT THOSE RULES MAY NOT CONFLICT WITH TITLE 36, CHAPTER 28.2.
F, THE DEPARTMENT MAY SHARE CONFIDENTIAL INFORMATION AS DEFINED IN SECTION 42-2001
WITH THE DEPARTMENT OF HEALTH SERVICES FOR ITS USE IN DETERMINING WHETHER A MARIJUANA ESTABLISHMENT, MARIJUANA TESTING FACILITY OR DUAL LICENSEE IS IN COMPLIANCE WITH TAX OBLIGATIONS UNDER THIS TITLE OR TITLE 43.
Section 6. Title 43, Chapter 1, article 1, Arizona Revised Statutes, is amended by adding Section 43-108 to read:
43-108. Subtraction from gross income: ordinary and necessary expenses, marijuana establishments and marijuana testing facilities; definitions
A. NOTWITHSTANDING ANY OTHER LAW, IN COMPUTING ARIZONA ADJUSTED GROSS INCOME OR
ARIZONA TAXABLE INCOME FOR A TAXPAYER, ALL ORDINARY AND NECESSARY EXPENSES PAID OR INCURRED
DURING THE TAXABLE YEAR IN CARRYING ON A TRADE OR BUSINESS AS A MARIJUANA ESTABLISHMENT,
MARIJUANA TESTING FACILITY, OR DUAL LICENSEE THAT ELECT S TO OPERATE ON A FOR-PROFIT BASIS
PURSUANT TO TITLE 36, CHAPTER 28.2 SHALL BE SUBTRACTED FROM ARIZONA GROSS INCOME TO THE EXTENT
NOT ALREADY EXCLUDED FROM ARIZONA GROSS INCOME.
B. FOR THE PURPOSES OF THIS SECTION, “DUAL LICENSEE,” “MARIJUANA ESTABLISHMENT,” AND
“MARIJUANA TESTING FACILITY” HAVE THE SAME MEANINGS PRESCRIBED IN SECTION 36-2850.
Section 7. Voter Protection Act
For the purposes of the Voter Protection Act, Ariz. Const. art. IV, pt. 1, § 1(6)(C), the People of the State of Arizona declare that the following acts of the Legislature would further the purpose of this act:
- Enacting a per se law for the presumption of marijuana impairment based on the concentration of delta-9 tetrahydrocannabinol in a person’s body when scientific research on the subject is conclusive and the National Highway Traffic Safety Administration recommends the adoption of such a law.
- Reducing or eliminating any offense, offense level or penalty provided for in this act.
- Increasing the amount of marijuana that a person may lawfully possess.
- Amending the provisions of this act to align more closely with federal laws and regulations if marijuana is legalized or decriminalized by the federal government, but only if and to the extent that such federal laws and regulations are not more restrictive than the provisions of this act.
- Amending the provisions of this act to align more closely with federal laws and regulations governing the possession, processing, cultivation, transport, or transfer of industrial hemp, but only if and to the extent that such federal laws and regulations are not more restrictive than the provisions of this act.
- Increasing the number of marijuana establishment licenses by up to 10 percent in furtherance of the social equity ownership program established by this act.
- Facilitating the expungement and sealing of records of arrests, charges, convictions, adjudications and sentences that were predicated on conduct made lawful by this act, including by automatic means, and otherwise preventing or mitigating prejudice to individuals whose arrests, charges, convictions, adjudications or sentences are expunged.
- Amending the definition of “smoking” in this act to conform with the Smoke-Free Arizona Act if that act is amended to include the use of an electronic smoking device that creates an acrosol or vapor.
Section 8. Exemption from rulemaking
For the purposes of this act, and for sixty months after the effective date of this act, the department of revenue and the department of health services are exempt from
(a) any executive order or other directive purporting to limit or restrict their ability to adopt new rules, and
(b) the rulemaking requirements of title 41, chapters 6 and 6.1, Arizona Revised Statutes,
except that each department shall provide the public with a reasonable opportunity to comment on proposed rules and shall publish otherwise exempted rules.
For 60 be months after this becomes law, the AZ Depts. of Revenue and Health Services can’t be restricted by new laws.
They can also ignore some.Arizona Revised Statutes
Section 9. Severability
If any provision of this act or its application to any person or circumstance is declared invalid by a court of competent jurisdiction, such invalidity does not affect other provisions or applications of this act that can be given effect without the invalid provision or application.
The invalidated provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of this act and, to the fullest extent possible, the provisions of this act, including each portion of any section of this act containing any invalidated provision that is not itself invalid, shall be construed so as to give effect to the intent thereof.
If any part of this law is found to be “invalid” by a court, the remaining parts will still be valid.