Florida Senate - 2022 SB 1886



By Senator Powell





30-00953-22 20221886__
1 A bill to be entitled
2 An act relating to taxes and fees; creating s.
3 566.801, F.S.; specifying fees under ch. 566, F.S.,
4 for various applications, renewals, and other
5 purposes; creating s. 566.802, F.S.; providing
6 contributions for early approval adult use dispensing
7 organization licenses; creating s. 566.803, F.S.;
8 authorizing the Department of Business and
9 Professional Regulation to revise fees after a
10 specified date; creating s. 566.804, F.S.; providing
11 for certain mandatory contributions for obtaining
12 early approval adult use dispensing organization
13 licenses; creating s. 566.805, F.S.; levying a tax on
14 the cultivation of cannabis; specifying the amount of
15 the tax; providing for the collection, payment, and
16 administration of the tax; providing for rulemaking;
17 creating s. 566.806, F.S.; defining terms; levying a
18 tax on cannabis purchases; providing exceptions;
19 providing for the collection, payment, and
20 administration of the tax; requiring recordkeeping;
21 prohibiting specified offenses concerning the tax;
22 providing criminal penalties; defining terms;
23 providing for enforcement; authorizing the department
24 to adopt rules; providing a contingent effective date.
25
26 Be It Enacted by the Legislature of the State of Florida:
27
28 Section 1. Section 566.801, Florida Statutes, is created to
29 read:
30 566.801 Fees.—Licensing and registration fees under this
31 chapter are as follows:
32 (1) Early approval adult use dispensing organization
33 license fees:
34 (a) Application under s. 566.202(2)(a), $30,000.
35 (b) Renewal under s. 566.202(11)(a), $30,000.
36 (c) Secondary site application under s. 566.202(15)(d)1.,
37 $30,000.
38 (d) Secondary site renewal under s. 566.202(15)(p)1.,
39 $30,000.
40 (2) Conditional adult use dispensing organization licenses:
41 (a) Under s. 566.203(4)(a), $5,000.
42 (b) Under s. 566.203(7)(b), $60,000.
43 (3) Adult use dispensing organization licenses:
44 (a) Initial license under s. 566.2032(2)(b), $60,000.
45 (b) Renewal under s. 566.20331(3), $60,000.
46 (4) Adult use dispensing organization agent:
47 (a) Identification card fees:
48 1. Initial card under s. 566.2033(1)(e), $100.
49 2. Renewal card under s. 566.20331(3), $100.
50 (b) Applicants for training approval:
51 1. Under s. 566.2033(1)(e), $2,000.
52 2. Under s. 566.2033(16), $2,000.
53 (5) Changes in ownership of a dispensing organization under
54 s. 566.20334(10)(b), $5,000.
55 (6) Early approval of adult use cultivation center
56 licenses:
57 (a) Application fee under s. 566.3011(2)(a), $100,000.
58 (b) Cannabis business development fee under s.
59 566.3011(2)(h), $250,000.
60 (c) Required contribution under s. 566.3011(2)(i),
61 $100,000.
62 (d) Renewal fee under s. 566.3011(3)(a), $100,000.
63 (7) Conditional adult use license under s. 566.3013(4),
64 $100,000.
65 (8) Conditional adult use cultivation center license
66 registration fee under s. 566.3014(2)(b), $100,000.
67 (9) Cultivation center license renewal under s.
68 566.3019(1)(a), $100,000.
69 (10) Craft grower:
70 (a) Application fee under s. 566.401(2)(a)1., $5,000.
71 (b) License fee under s. 566.401(3)(d), $40,000.
72 (c) License renewal under s. 566.401(9)(a)1., $40,000.
73 (11) Infuser organization:
74 (a) Application fee under s. 566.405(2)(a)1., $5,000.
75 (b) License fee under s. 566.401(3)(d), $5,000.
76 (c) Renewal application fee under s. 566.405(9)(a)1.,
77 $20,000.
78 (12) Transporting organizations:
79 (a) Application fee under s. 566.4501(2)(a)1., $5,000.
80 (b) License fee under s. 566.4501(3)(e), $10,000.
81 (c) Renewal fee under s. 566.4501(8)(a)1., $10,000.
82 Section 2. Section 566.802, Florida Statutes, is created to
83 read:
84 566.802 Contributions for early approval adult use
85 dispensing organization licenses.—The contributions for early
86 approval adult use dispensing organization licenses under this
87 chapter are as follows:
88 (1) Nonrefundable cannabis business development fee under
89 s. 566.202(2)(g), $100,000.
90 (2) Social equity inclusion plans specified in s.
91 566.202(2)(h)1., 2., or 3., $100,000.
92 (3) Social equity inclusion plan specified in s.
93 566.202(2)(h)5., $200,000.
94 Section 3. Section 566.803, Florida Statutes, is created to
95 read:
96 566.803 Department fee revisions.—After January 1, 2022,
97 the department may by rule modify any fee established under this
98 chapter.
99 Section 4. Section 566.804, Florida Statutes, is created to
100 read:
101 566.804 Mandatory contributions for early approval adult
102 use dispensing organization licenses.—The mandatory
103 contributions for early approval adult use dispensing
104 organization licenses under this chapter are as follows:
105 (1) Nonrefundable cannabis business development fee under
106 s. 566.202(2)(g), $100,000.
107 (2) Social equity inclusion plans specified in s.
108 566.202(2)(h)1., 2., or 3., $100,000.
109 (3) Social equity inclusion plan specified in s.
110 566.202(2)(h)5., $200,000.
111 (4) Nonrefundable cannabis development fee for secondary
112 site applications under s. 566.202(15)(d)15., $200,000.
113 Section 5. Section 566.805, Florida Statutes, as created by
114 SB ___, is amended to read:
115 566.805 Cannabis cultivation.—
116 (1) CULTIVATING CANNABIS PRIVILEGE.—
117 (a) Beginning January 1, 2023, a tax is imposed upon the
118 privilege of cultivating cannabis at the rate of 7 percent of
119 the gross receipts from the first sale of cannabis by a
120 cultivator. The sale of any product that contains any amount of
121 cannabis or any derivative thereof is subject to the tax under
122 this section on the full selling price of the product. The
123 department may determine the selling price of the cannabis when
124 the seller and purchaser are affiliated persons, when the sale
125 and purchase of cannabis is not an arm’s length transaction, or
126 when cannabis is transferred by a craft grower to the craft
127 grower’s dispensing organization or infuser or processing
128 organization and a value is not established for the cannabis.
129 The value determined by the department must be commensurate with
130 the actual price received for products of like quality,
131 character, and use in the area. If there are no sales of
132 cannabis of like quality, character, and use in the same area,
133 the department must establish a reasonable value based on sales
134 of products of like quality, character, and use in other areas
135 of this state, taking into consideration any other relevant
136 factors.
137 (b) The cannabis cultivation privilege tax imposed under
138 this section is solely the responsibility of the cultivator who
139 makes the first sale and is not the responsibility of a
140 subsequent purchaser, a dispensing organization, or an infuser.
141 Persons subject to the tax imposed under this section may
142 reimburse themselves for their tax liability hereunder by
143 separately stating reimbursement for their tax liability as an
144 additional charge.
145 (c) The tax imposed under this section is in addition to
146 all other occupation, privilege, or excise taxes imposed by the
147 state or by any unit of local government.
148 (2) REGISTRATION OF CULTIVATORS.—Every cultivator and craft
149 grower subject to the tax under this section shall apply to the
150 Department of Revenue for a certificate of registration under
151 this section. All applications for registration under this
152 section must be made by electronic means in the form and manner
153 required by the department. For that purpose, the provisions of
154 chapter 212 are incorporated into this section to the extent
155 such provisions are not inconsistent with this section. In
156 addition, a certificate of registration may not be issued under
157 this section unless the applicant is licensed under this
158 chapter.
159 (3)(a) RETURN AND PAYMENT.—Each person who is required to
160 pay the tax imposed by this section shall make a return to the
161 department on or before the 20th day of each month for the
162 preceding calendar month stating the following:
163 1. The taxpayer’s name.
164 2. The address of the taxpayer’s principal place of
165 business and, if different, the address where the taxpayer is
166 engaged in the business of cultivating cannabis subject to tax
167 under this section.
168 3. The total amount of receipts received by the taxpayer
169 during the preceding calendar month from sales of cannabis
170 subject to tax under this section.
171 4. The total amount received by the taxpayer during the
172 preceding calendar month on charge and time sales of cannabis
173 subject to tax imposed under this section.
174 5. Any deductions allowed by law.
175 6. The gross receipts that were received by the taxpayer
176 during the preceding calendar month and upon the basis of which
177 the tax is imposed.
178 7. The amount of tax due.
179 8. The signature of the taxpayer.
180 9. Any other information as the department may reasonably
181 require.
182 (b) All returns required to be filed and payments required
183 to be made under this section must be by electronic means.
184 Taxpayers who demonstrate hardship in paying electronically may
185 petition the department to waive the electronic payment
186 requirement.
187 (c) The taxpayer making the return provided for in this
188 section shall also pay to the department the amount of tax
189 imposed by this section, less a discount of 1.75 percent, which
190 may not exceed the $1,000 allowed per return period to reimburse
191 the taxpayer for the expenses incurred in keeping records,
192 collecting and remitting the tax, preparing and filing returns,
193 and supplying data to the department upon request. However, a
194 discount may not be claimed by a taxpayer in the following
195 instances:
196 1. On returns not timely filed and for taxes not timely
197 remitted.
198 2. On returns that are not filed electronically.
199 3. For any payment that is not made electronically, unless
200 a waiver has been granted under this section.
201 (d) Any amount that is required to be shown or reported on
202 any return or other document under this section must, if the
203 amount is not a whole dollar amount, be increased to the nearest
204 whole dollar amount if the fractional part of a dollar is $0.50
205 or more and decreased to the nearest whole dollar amount if the
206 fractional part of a dollar is less than $0.50.
207 (e) If a total amount of less than $1 is payable,
208 refundable, or creditable, the amount must be disregarded if it
209 is less than $0.50 and must be increased to $1 if it is $0.50 or
210 more.
211 (f) A taxpayer who ceases to engage in business subject to
212 the requirements of this section shall file a final return under
213 this section with the department within 1 month after
214 discontinuing such business, notwithstanding any provision of
215 this section concerning the timeframe within which the taxpayer
216 must file the regular return.
217 (g) Each taxpayer subject to this section shall make
218 estimated payments to the department on or before the 7th, 15th,
219 22nd, and last day of the month during which tax liability to
220 the department is incurred. The payments must be in an amount
221 not less than the lower of either 22.5 percent of the taxpayer’s
222 actual tax liability for the month or 25 percent of the
223 taxpayer’s actual tax liability for the same calendar month of
224 the preceding year.
225 (h) The amount of the quarter-monthly payments must be
226 credited against the final tax liability of the taxpayer’s
227 return for that month. If any quarter-monthly payment is not
228 paid at the time or in the amount required by this section, the
229 taxpayer is liable for penalties and interest on the difference
230 between the minimum amount due as a payment and the amount of
231 the quarter-monthly payment actually and timely paid, except
232 insofar as the taxpayer has previously made payments for that
233 month to the department in excess of the minimum payments
234 previously due under this section.
235 (i) If any payment provided for in this section exceeds the
236 taxpayer’s liabilities under this section, as shown on an
237 original monthly return, the department must, if requested by
238 the taxpayer, issue to the taxpayer a credit memorandum no later
239 than 30 days after the date of payment. The credit evidenced by
240 the credit memorandum may be assigned by the taxpayer to a
241 similar taxpayer under this chapter, in accordance with rules
242 adopted by the department. If a request for a credit memorandum
243 is not made, the taxpayer may credit the excess payment against
244 tax liability subsequently to be remitted to the department
245 under this chapter, in accordance with rules adopted by the
246 department. If the department subsequently determines that all
247 or any part of the credit taken was not actually due to the
248 taxpayer, the taxpayer’s discount must be reduced, if necessary,
249 to reflect the difference between the credit taken and that
250 actually due, and the taxpayer is liable for penalties and
251 interest on the difference.
252 (j) If a taxpayer fails to sign a return within 30 days
253 after the proper notice and demand for signature by the
254 department is received by the taxpayer, the return is considered
255 valid and any amount shown to be due on the return is deemed
256 assessed.
257 (4) INFUSER INFORMATION RETURNS.—If deemed necessary for
258 the administration of this section, the department may adopt
259 rules requiring infusers to file information returns regarding
260 the sale of cannabis by infusers to dispensaries. The department
261 may require infusers to file all such returns by electronic
262 means.
263 (5) DEPOSIT OF PROCEEDS.—All moneys received by the
264 department under this section must be deposited into the
265 Alcoholic Beverage, Marijuana, and Tobacco Trust Fund.
266 (6) ADMINISTRATION AND ENFORCEMENT.—
267 (a) The department has the power to administer and enforce
268 this section; to collect all taxes, penalties, and interest due
269 hereunder; to dispose of such taxes, penalties, and interest as
270 provided in this section; and to issue credit memoranda when
271 warranted due to erroneous payment of such taxes, penalties, or
272 interest.
273 (b) In the administration of and compliance with this
274 section, the department and persons who are subject to this
275 section have the same rights, remedies, privileges, immunities,
276 powers, and duties; are subject to the same conditions,
277 restrictions, limitations, penalties, and definitions of terms;
278 and shall employ the same procedures as are prescribed in
279 chapter 212 which are not inconsistent with this section.
280 (7) INVOICES.—
281 (a) Every sales invoice for cannabis issued by a cultivator
282 to a cannabis business establishment must contain all of the
283 following information:
284 1. The cultivator’s certificate of registration number
285 assigned under this section.
286 2. The date the invoice was issued.
287 3. The invoice number.
288 4. The purchaser’s name and address.
289 5. The selling price.
290 6. The amount of cannabis, cannabis concentrate, or
291 cannabis-infused product.
292 7. Any other information the department deems necessary for
293 the administration of this section.
294 (b) Cultivators shall retain the invoices to be presented
295 upon demand for inspection by the department.
296 (8)(1) ARREST; SEARCH AND SEIZURE WITHOUT WARRANT.—Any duly
297 authorized employee of the department may arrest without warrant
298 any person committing in his or her presence a violation of this
299 section; may without a search warrant inspect