HB4135 Summary

• Creates a Library District Cannabis Retailers' Occupation Tax Law allowing library districts to impose a 1% tax on cannabis retail sales (excluding medical cannabis) starting January 1, 2021.

• Library districts can adopt this tax by ordinance, with the Department of Revenue administering collection and enforcement.

• Reduces the county cannabis tax rate by 1% in areas where a library district imposes the tax: from 3.75% to 2.75% in unincorporated areas and from 3% to 2% in municipalities.

• All tax revenue collected is deposited into the Local Cannabis Consumer Excise Tax Trust Fund and distributed monthly to library districts, minus a 1.5% administrative fee.

• Ordinances imposing the library district tax must be filed with the Department of Revenue by September 1 to take effect January 1 of the following year.