|
This amendment
changes the amount of the excise tax on cannabis flower from $150 per pound
in the committee amendment to $175 per pound and the amount of the excise tax
on cannabis trim from $20 per pound in the committee amendment to $35 per
pound, beginning January 1, 2025 and until January 1, 2027. The incremental
impact is to reduce the revenue loss to the General Fund from the committee
amendment by $588,000 in fiscal year 2024-25 and to reduce the revenue loss
to the Adult Use Cannabis Public Health and Safety and Municipal Opt-in Fund
(AUPH Fund) by $56,000 in fiscal year 2024-25.
To offset the loss of revenue from the change to the excise tax beginning
January 1, 2025 and until January 1, 2027, this amendment allows the transfer
of unobligated balances in the the AUPH Fund to be deposited in the General
Fund beginning January 1, 2025. In fiscal year 2024-25 the transfer will be
$3,202,000. Additional transfers will be required in fiscal year 2025-26 and
the amount will depend on excise tax revenue generated and available
balances. Additionally, beginning January 1, 2027 to offset the loss of
revenue from the change to a 10% tax rate from the tax of $175 per pound of
cannabis flower and $35 per pound of cannabis trim, this amendment, requires
up to 50% of the amount of revenue credited to the AUPH Fund from the excise
tax on adult cannabis and adult cannabis products to be deposited in the
General Fund. |