Wednesday, September 13, 2017

MJ and the 3% tax

Shall Framingham accept the provisions of section 3 of chapter 64N of the General Laws as
affected by Chapter 55 of the Acts of 2017, a fair and concise summary of which appears
below?
(a) A city or town that accepts this section in the manner provided in section 4 of chapter 4
may impose a local sales tax upon sale or transfer of marijuana or marijuana products by a
marijuana retailer operating within the city or town to anyone other than a marijuana
establishment at a rate not greater than 3 per cent of the total sales price received by the
marijuana retailer as a consideration for the sale of marijuana or marijuana products. The
marijuana retailer shall pay the local sales tax imposed under this section to the
commissioner at the same time and in the same manner as the sales tax due to the
commonwealth.
(b) All sums received by the commissioner under this section shall, at least quarterly, be
distributed, credited and paid by the treasurer and receiver-general upon certification of the
commissioner to each city or town that has accepted this section in proportion to the amount
of the sums received in that city or town. Any city or town seeking to dispute the
commissioner's calculation of its distribution under this subsection shall notify the
commissioner, in writing, not later than 1 year from the date the tax was distributed by the
commissioner to the city or town.
(c) This section shall take effect in a city or town on the first day of the calendar quarter
following 30 days after its acceptance by the city or town or on the first day of a later
calendar quarter that the city or town may designate.
A fair, concise summary and purpose of the law to be acted upon, as determined by town counsel
is below:
Acceptance of Section 3 of Chapter 64N of the General Laws would permit the Town to
impose a local sales tax upon the sale or transfer of marijuana or marijuana products by a
marijuana retailer operating within the town to anyone other than a marijuana establishment at
a rate not greater than 3 per cent of the total sales price received by the marijuana retailer as a
consideration for the sale of marijuana or marijuana products, or take any other action relative
thereto. (See, G.L.c. 64N, §3(a))
The local tax is received by the commissioner of revenue and shall be distributed credited and
paid by the treasurer and receiver-general to the Town at least quarterly in proportion to the
amount of the sums received in Town, upon the commissioner of revenue's certification. (See,
G.L.c. 64N, §3(b))
The provisions of M.G.L.c. 64N, §3 would take effect on January 1, 2018. Thirty days from
November 7, 2017 is December 7, 2017. Thich is the first calendar day thereafter is January
1, 2018.