California NORML reports that State Senator Carole Migden (D-SF) has introduced a bill, SB 529, that would relieve medical cannabis dispensaries from obligations for back sales taxes provided they promptly comply and register with the Board of Equalization. CA NORML supports SB 529 as it would encourage marijuana to be treated like other legal products. Under state law, all herbal medicines not sold in pharmacies by prescription are subject to sales tax.

In February, the Board of Equalization notified California medical cannabis dispensaries that they were liable for sales taxes. Many dispensaries have complied, in some cases paying hundreds of thousands in taxes per year. These back taxes have threatened to shut down some dispensaries, especially the smaller ones- thus limiting patients' safe access to the medicine they need. Sen. Migden's bill would eliminate this threat for those dispensaries that promptly comply with the law.

SB 529 is in the Assembly, and is expected to be sent to the Assembly Committee on Revenue and Taxation for hearings in early July. Axis of Love is calling for people around the state to contact their state senators, and urge them to support this bill. Read more

Legislative Status | ASA's past statement about sales tax | State Board of Equalization