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Daily Tax Report: State

California Medicinal Pot Donations Won’t Be Taxed

Oct. 13, 2019, 5:06 PM

Donations of marijuana for medical use are exempt from California state taxes under a bill signed by Gov. Gavin Newsom.

S.B. 34 by Sen. Scott Wiener (D) exempts the donations from taxes imposed on marijuana when it became legal for recreational use in 2018. Medicinal marijuana became legal in 1996.

  • Nonprofit organizations known as compassion programs donate medicinal pot to low-income people including veterans and people with HIV.
  • An oversight in the measure voters approved in 2016 to legalize recreational pot imposes cultivation and sales taxes on marijuana that the programs donate—at rates of $9.25 per ounce of dried marijuana...
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