HOUSE BILL 102
53rd legislature - STATE OF NEW MEXICO - first session, 2017
William "Bill" R. Rehm
RELATING TO TAXATION; CREATING THE MARIJUANA TAX ACT; IMPOSING AN EXCISE TAX ON THE DISTRIBUTION OF MARIJUANA; DISTRIBUTING PROCEEDS OF THE TAX TO THE COUNTY-SUPPORTED MEDICAID FUND; PRESCRIBING A PENALTY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 6 of this act may be cited as the "Marijuana Tax Act".
SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Marijuana Tax Act:
A. "department" means the taxation and revenue department, the secretary of the department or an employee of the department exercising authority lawfully delegated to the employee by the secretary;
B. "distribute" means to distribute, dispense, sell or give;
C. "engaging in business" means carrying on or causing to be carried on an activity for direct or indirect benefit, including an activity not intended for financial profit;
D. "marijuana" means cannabis; and
E. "person" means an individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate, limited liability company, limited liability partnership or other for-profit or nonprofit association.
SECTION 3. [NEW MATERIAL] IMPOSITION AND RATE OF TAX--DENOMINATION AS MARIJUANA TAX--DATE PAYMENT OF TAX DUE.--
A. There is imposed on a person that distributes marijuana in this state an excise tax at the rate of twenty-five dollars ($25.00) per ounce of marijuana distributed and on which this tax has not been paid. The tax imposed by this section may be referred to as the "marijuana tax".
B. A person that owes marijuana tax shall remit to the department payment of the tax on or before the twenty-fifth day of the month following the month in which the taxable event occurs.
SECTION 4. [NEW MATERIAL] REGISTRATION NECESSARY TO ENGAGE IN BUSINESS OF PRODUCING OR DISTRIBUTING MARIJUANA IN NEW MEXICO.--A person engaged in the business of distributing marijuana in New Mexico shall:
A. comply with requirements for registration and identification established by the secretary of taxation and revenue; and
B. furnish information requested by the department concerning the person's place of marijuana-distribution business.
SECTION 5. [NEW MATERIAL] RETENTION OF INVOICES AND RECORDS--INSPECTION BY DEPARTMENT.--
A. A person that distributes marijuana in New Mexico shall maintain a file of copies of the invoices of distribution for three years after the end of the year the distribution was made. The invoices shall indicate the date of distribution of the marijuana and the quantity of marijuana distributed.
B. The department may inspect:
(1) invoices required by this section to be maintained; and
(2) stock of marijuana in the possession of a distributor.
SECTION 6. [NEW MATERIAL] PENALTY.--A person distributing marijuana in New Mexico that is required to register with the department and to retain invoices and that willfully fails to register or retain invoices shall, upon conviction thereof, be fined not less than one hundred dollars ($100) or more than one thousand dollars ($1,000) for each violation.
SECTION 7. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] DISTRIBUTION--MARIJUANA TAX.--A distribution in accordance with Section 7-1-6.1 NMSA 1978 shall be made to the county-supported medicaid fund in an amount equal to the net receipts attributable to the marijuana tax."
SECTION 8. APPLICABILITY.--The distribution required by Section 7 of this act applies to receipts from the marijuana tax that are attributable to sales made on or after July 1, 2017.
SECTION 9. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2017.
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