Today AB 821 (Gipson) passed out of the Assembly Committee on Revenue and Taxation.
1) Provides that any person whose estimated tax liability averages $10,000 or more per month shall remit the amounts due by an EFT. (Revenue and Taxation Code (R&TC) 6479.3.)
2) Provides that any person required to remit taxes who remits those taxes by means other than appropriate EFT shall pay a penalty of 10% of the amount of taxes. (R&TC Section 6479.3.)3) Allows the BOE to relieve a person of the 10% penalty if that person’s failure to utilize an EFT is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect. (R&TC Section 6479.4.)
Assembly Member Mike Gipson has provided the following statement in support of this bill:
"Currently, due to the fact that marijuana is still federally classified as a Schedule 1 substance, the medical marijuana industry has been rendered “unbankable.” This leads to companies having to hold large amounts of cash and requires that tax payments be made in cash as well.
This bill seeks to support the state’s collection of tax payments by removing the penalty associated with cash tax payments above $10,000 a month in cases where an industry has lack of access to banking services."
REGISTERED SUPPORT / OPPOSITION:
- Americans for Safe Access
- Board of Equalization Member, District 3
- Board of Equalization Member, District 2
- Board of Equalization Member, District 1
- California Growers Association
None on file
The bill was amended by the committee; it passed 5-3 (on-call) and moves on to the Assembly Appropriations committee.