California Gov. Gavin Newsom has signed SB 34, a bill that eliminates taxes on charitable donations of medical marijuana for patients with severe chronic illnesses.
Since California legalized the use of marijuana for medical purposes in 1996, not-for-profit compassionate care programs have helped ensure access to marijuana for low-income Californians. To support the programs, for-profit cultivators and retailers donated cannabis. Donations were tax-free.
That changed with the passage of Proposition 64, the 2016 ballot measure that legalized adult marijuana use in California. Prop. 64 imposed a broad tax on cannabis suppliers and for-profit businesses. Swept up in the tax regime were charitable donations.
Cannabis flowers were taxed at $9.25 per dry-weight ounce and cannabis leaves at $2.75 per dry-weight ounce. The taxes applied to all cannabis, whether for donation or sale.
The Dennis Peron and Brownie Mary Act
The Dennis Peron and Brownie Mary Act (SB 34) corrects what its proponents saw as an overreach of California’s tax-and-regulate model.
Senator Scott Weiner