California: Medical Marijuana Sales Tax Exemption for Hospice Patients
- Sales Tax News
- Apr 3, 2013 | Gail Cole
BOE Chairman Jerome E. Horton said that the measure “eliminates sales tax on purchases of medicine that relieves the pain and suffering faced by our loved ones during their final days.” He pointed out that “[t]his measure is consistent with similar laws which exempt the purchases of many medications from sales and use taxes.”
Amir Daliri, Director of Government Relations for the California Cannabis Association, backs the measure. He notes that the “legislation would provide the needed relief for these patients and ensure the integrity of the medical marijuana system in California.”
In order to obtain the sales tax exemption, hospice patients or their caregivers would be requried to obtain a valid exemption certificate from the BOE. That certificate “would remain effectivefor the duration of their California Department of Public Health-issued Medical Marijuana Program identification.”
According to BOE estimates, “total sales of medical marijuana range between $700 million and $1.3 billion.” That translates to between $58 million to $105 million in sales and use tax revenue.
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