§ 20-2A-80 — Tax on Retail Sales of Medical Cannabis; Annual Medical Cannabis Privilege Tax

Alabama § 20-2A-80

• Jurisdiction: Alabama
• Title 20: Food, Drugs and Cosmetics
• Ch. 2A: Darren Wesley “Ato” Hall Compassion Act
• Art. 5: Taxation

Text

(a) Commencing January 1, 2022, there is levied, in addition to all other taxes of every kind now imposed by law, and shall be collected and remitted in accordance with Article 1, commencing with Section 40-23-1, of Chapter 23 of Title 40, a tax on the gross proceeds of the sales of medical cannabis when sold at retail in this state at the rate of nine percent of the gross proceeds of the sales.
(b)(1) Commencing January 1, 2022, there is levied an annual privilege tax on every person doing business under this chapter in Alabama. The tax shall accrue as of January 1 of every taxable year, or in the case of a taxpayer licensed under this chapter, during the year, or doing business in this state for the first time, as of the date the taxpayer is licensed to do business under this chapter. The tax shall be levied upon the taxpayer’s net worth in Alabama for the taxable year. For purposes of this subdivision, a taxpayer’s net worth in Alabama shall be determined by apportioning the taxpayer’s net worth computed under Section 40-14A-23, in the same manner as prescribed for apportioning income during the determination period for purposes of the income tax levied by Chapter 18 of Title 40, or the manner in which the income would be apportioned if the taxpayer were subject to the income tax.
(2) The amount of tax due shall be computed in the same manner and at the same rate of tax as prescribed in Section 40-14A-22, for purposes of determining the annual privilege tax levied by Chapter 14A of Title 40.
(3) The annual return required by this subsection shall be due no later than the corresponding federal income tax return, as required to be filed under federal law. In the case of a taxpayer’s initial return, the annual return shall be due no later than two and one-half months after the taxpayer is licensed to do business, or commences business, in Alabama.
(4) The Department of Revenue may grant a reasonable extension of time for filing returns under rules adopted by the Department of Revenue. No extension shall be for more than six months.
(5) The annual medical cannabis privilege tax shall be reported on forms and in the manner as prescribed by rule by the Department of Revenue. The failure to receive a form from the Department of Revenue shall not relieve a taxpayer from liability for any tax, penalty, or interest otherwise due. The tax due, as reported, shall constitute an admitted liability for that amount. The Department of Revenue may compute and assess additional tax, penalty, and interest against a taxpayer as provided in this chapter.
(c) The Department of Revenue shall adopt rules to implement this section.

Legislative History

(Act 2021-450, §2.)