Amendment #10 to H4187

Local excise tax options and HCA reforms

Mr. Cruz of Salem moves to amend the bill by adding the following section: 

Section XXXX.

(a) Notwithstanding any general or special law to the contrary, a city or town may, by vote of a simple majority of the city council, or by a vote of a simple majority at an annual or special town meeting, adopt a local cannabis excise tax in lieu of entering into or enforcing a host community agreement with a cannabis establishment as otherwise authorized under this chapter and regulations promulgated by the cannabis control commission.

(b) Upon adoption of the local excise tax pursuant to this section, any existing host community agreement between the municipality and a cannabis establishment shall be deemed null and void as of the effective date of the municipal vote. No cannabis establishment operating within such municipality shall be required to enter into or maintain a host community agreement thereafter.

(c) The local excise tax authorized by this section shall not exceed a total of 6 percent on the gross sales of marijuana or marijuana products by a cannabis establishment to a consumer at retail within the adopting municipality. A municipality may also adopt, by separate vote of its legislative body, an additional 1 percent excise tax to be levied exclusively for the purpose of supporting public education. All revenue generated by such additional 1 percent shall be restricted to appropriations for public education and shall be governed and expended under the authority of the local school committee.

(d) A city or town  adopting the provisions of this section shall notify the cannabis control commission in writing within 30 days of such adoption. The notice shall include the date of the vote, a certified copy of the vote, and the effective date of the change in local tax and regulatory status. The cannabis control commission shall maintain a public record of municipalities that have adopted this section.

(e) Revenue collected from the local excise tax established under this section, excluding revenue derived from the additional 1 percent excise tax for public education, shall be credited to the general fund of the municipality and may be appropriated for any lawful municipal purpose.

(f) The department of revenue, in consultation with the cannabis control commission, shall promulgate rules and regulations necessary to implement and enforce the provisions of this section, including procedures for collection and remittance of the tax by licensed cannabis establishments.

Additional co-sponsor(s) added to Amendment #10 to H4187

Local excise tax options and HCA reforms