SB 73: "An Act relating to the registration of marijuana establishments; relating to a tax exemption for qualified small businesses; relating to marijuana taxes; and providing for an effective date."
00 SENATE BILL NO. 73 01 "An Act relating to the registration of marijuana establishments; relating to a tax 02 exemption for qualified small businesses; relating to marijuana taxes; and providing for 03 an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 17.38.200(d) is amended to read: 06 (d) Within 45 to 90 days after receiving an application or renewal application, 07 the board shall issue a biennial [AN ANNUAL] registration to the applicant unless 08 the board finds the applicant is not in compliance with regulations enacted under 09 [PURSUANT TO] AS 17.38.190 or the board is notified by the relevant local 10 government that the applicant is not in compliance with ordinances and regulations 11 made under [PURSUANT TO] AS 17.38.210 and in effect at the time of application. 12 * Sec. 2. AS 17.38.210(e) is amended to read: 13 (e) A local government may establish a schedule of biennial [ANNUAL] 14 operating, registration, and application fees for marijuana establishments, provided
01 that the local government may charge the 02 (1) application fee only if an application is submitted to the local 03 government in accordance with (f) of this section; and 04 (2) registration fee only if a registration is issued by the local 05 government in accordance with (f) of this section. 06 * Sec. 3. AS 17.38.210(f) is amended to read: 07 (f) If the board does not issue a registration to an applicant within 90 days 08 after receiving [OF RECEIPT OF] the application filed in accordance with 09 AS 17.38.200 and does not notify the applicant of the specific, permissible reason for 10 its denial, in writing and within that [SUCH] time period, or if the board has adopted 11 regulations under [PURSUANT TO] AS 17.38.190 and has accepted applications 12 under [PURSUANT TO] AS 17.38.200 but has not issued any registrations by 15 13 months after February 24, 2015, the applicant may resubmit its application directly to 14 the local regulatory authority, in accordance with [PURSUANT TO] (c) of this 15 section, and the local regulatory authority may issue a biennial [AN ANNUAL] 16 registration to the applicant. If an application is submitted to a local regulatory 17 authority under this subsection, the board shall forward to the local regulatory 18 authority the application fee paid by the applicant to the board upon request by the 19 local regulatory authority. 20 * Sec. 4. AS 17.38.210(h) is amended to read: 21 (h) A local regulatory authority issuing a registration to an applicant shall do 22 so within 90 days after receiving [OF RECEIPT OF] the submitted or resubmitted 23 application unless the local regulatory authority finds and notifies the applicant that 24 the applicant is not in compliance with ordinances and regulations made under 25 [PURSUANT TO] (b) of this section in effect at the time the application is submitted 26 to the local regulatory authority. The local government shall notify the board if a 27 biennial [AN ANNUAL] registration has been issued to the applicant. 28 * Sec. 5. AS 17.38.210(j) is amended to read: 29 (j) A subsequent or renewed registration may be issued under (f) of this 30 section on a biennial [AN ANNUAL] basis only upon resubmission to the local 31 government of a new application submitted to the board under [PURSUANT TO]
01 AS 17.38.200. 02 * Sec. 6. AS 17.38.320 is amended to read: 03 Sec. 17.38.320. Effect on registrations of prohibition of marijuana 04 establishments. If a majority of voters vote to prohibit the operation of marijuana 05 establishments under AS 17.38.300, the board may not issue, renew, or transfer, 06 between persons or locations, a registration for a marijuana establishment located 07 within the perimeter of the established village. A registration that may not be renewed 08 because of a local option election held under AS 17.38.300 is void 90 days after the 09 results of the election are certified. A registration that expires during the 90 days after 10 the results of a local option election are certified may be extended, until it is void 11 under this section, by payment of a prorated portion of the biennial [ANNUAL] 12 registration fee. 13 * Sec. 7. AS 43.20.012(a) is amended to read: 14 (a) The tax imposed by this chapter does not apply to 15 (1) an individual; 16 (2) a fiduciary; 17 (3) the income received by a regional association qualified under 18 AS 16.10.380 or nonprofit corporation holding a hatchery permit under AS 16.10.400 19 from the sale of salmon or salmon eggs under AS 16.10.450 or from a cost recovery 20 fishery under AS 16.10.455; [OR] 21 (4) the income received by a nonprofit corporation holding a permit 22 under AS 16.12.010 from the sale of shellfish under AS 16.12.080 or from a cost 23 recovery fishery under AS 16.12.090; or 24 (5) an Alaska corporation that is a qualified small business and 25 that meets the active business requirements in 26 U.S.C. 1202(e), as that 26 subsection read on January 1, 2012. 27 * Sec. 8. AS 43.20.012 is amended by adding new subsections to read: 28 (e) For the purposes of (a)(5) of this section, 29 (1) whether a corporation qualifies under (a)(5) of this section shall be 30 determined on the first day of the tax year for which the corporation claims it qualifies 31 under (a)(5) of this section;
01 (2) all corporations that are members of the same parent-subsidiary 02 controlled group shall be treated as one corporation. 03 (f) In this section, 04 (1) "Alaska corporation" means a corporation that has been 05 incorporated in the state or is authorized to do business in the state; 06 (2) "parent-subsidiary controlled group" has the meaning given in 26 07 U.S.C. 1202, as that section read on January 1, 2012; 08 (3) "qualified small business" has the meaning given in 26 U.S.C. 09 1202, as that section read on January 1, 2012, and does not include a construction, 10 transportation, utility, or fisheries business. 11 * Sec. 9. AS 43.61.010(a) is amended to read: 12 (a) An excise tax is imposed on the sale or transfer of marijuana from a 13 marijuana cultivation facility to a retail marijuana store or marijuana product 14 manufacturing facility. Every marijuana cultivation facility shall pay an excise tax at 15 the rate of $12 an [$50 PER] ounce, or proportionate part thereof, on marijuana that is 16 sold or transferred from a marijuana cultivation facility to a retail marijuana store or 17 marijuana product manufacturing facility. 18 * Sec. 10. AS 43.61.010(b) is amended to read: 19 (b) The department may exempt certain parts of the marijuana plant from the 20 excise tax described in (a) of this section [OR MAY ESTABLISH A RATE LOWER 21 THAN $50 PER OUNCE FOR CERTAIN PARTS OF THE MARIJUANA PLANT]. 22 * Sec. 11. AS 43.61.010 is amended by adding a new subsection to read: 23 (g) The tax imposed under (a) of this section is imposed on the sale or transfer 24 of marijuana by a person who, without a current valid registration, cultivates 25 marijuana in an amount that exceeds the amount allowed under AS 17.38.020 for 26 personal use. A person who cultivates marijuana without a current valid registration is 27 liable for the tax imposed under this subsection at the time the sale or transfer is made. 28 * Sec. 12. AS 43.61.020(b) is amended to read: 29 (b) The marijuana cultivation facility shall pay monthly to the department, all 30 taxes, computed at the rate [RATES] prescribed in this chapter, on the respective total 31 quantities of the marijuana sold or transferred during the preceding month. The
01 monthly return shall be filed and the tax paid on or before the last day of each month 02 to cover the preceding month. 03 * Sec. 13. AS 43.61.030(a) is amended to read: 04 (a) A person who is delinquent in the payment of a tax [DELINQUENT 05 PAYMENTS] under this chapter is [SHALL] subject [THE MARIJUANA 06 CULTIVATION FACILITY] to civil penalties under AS 43.05.220. 07 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 APPLICABILITY. (a) AS 43.20.012(a), as amended by sec. 7 of this Act, and 10 AS 43.20.012(e) and (f), enacted by sec. 8 of this Act, apply to the tax year of a corporation 11 beginning on or after the effective date of this Act. 12 (b) AS 43.61.010(g), enacted by sec. 11 of this Act, and AS 43.61.030(a), as amended 13 by sec. 13 of this Act, apply to taxes accrued on or after the effective date of this Act. 14 * Sec. 15. This Act takes effect July 1, 2025.