SB 1918 Summary

• Establishes licensing and registration fees for cannabis businesses under Chapter 566, including application and renewal fees ranging from $5,000 to $100,000 depending on license type (dispensaries, cultivation centers, infusers, transporters, craft growers).

• Creates a 7 percent privilege tax on cultivators for the first sale of cannabis beginning January 1, 2022, with the Department of Revenue authorized to determine value for affiliated transactions and transfers without established prices.

• Imposes a tiered excise tax on cannabis purchases effective January 1, 2022: 10 percent on cannabis with adjusted THC level at or below 35 percent, 25 percent above 35 percent, and 20 percent on cannabis-infused products, with exemptions for medical marijuana cardholders.

• Requires cultivators and cannabis retailers to register with the Department of Revenue, file monthly returns electronically, and maintain detailed records; authorizes penalties up to $5,000 for civil violations and felony charges for tax evasion, fraudulent returns, and use of sales suppression devices.

• Deposits proceeds from the cultivation tax into the Alcoholic Beverage, Marijuana, and Tobacco Trust Fund and excise tax proceeds into the Cannabis Regulation Fund.