1045 1045G

1045G

On the previously adopted amendment (1045C), On page 1, line 5, after "Dakota:" delete "Section 1. That chapter 10-45 be amended with a NEW SECTION:

On the previously adopted amendment (1045C), On page 1, line 6, after "SECTION:" delete "The department shall appropriate may expend so much of the revenue collected pursuant to section 1 section 4 of this Act to cover the costs incurred by the department in carrying out its duties to collect the revenue pursuant to section 1 section 4 of this Act.

If the remaining revenue does not exceed ten million dollars in a tax year, the remaining revenue must be deposited into the state general fund.

If the remaining revenue exceeds ten million dollars in a tax year, fiftyFifty percent of the remaining revenue must be divided proportionally amongst the counties based on where the revenue was generated. The revenue must be distributed to the county by September first of each year to be used for the construction, repair, and renovation of courthouses, jails, county roads, bridges, with any revenue not used for these purposes to be used to reduce the property tax levy in the county. The remaining fifty percent of revenue must be deposited into the state general fund purposes set forth in section 2 of this Act."

On the previously adopted amendment (1045C), On page 1, line 20, delete " section 2" and insert " section 4"

On the previously adopted amendment (1045C), On page 2, line 1, delete "(1) "Average Market Rate," the average prices as determined by the department, pursuant to section 4 of this Act, based on all marijuana sold or transferred from manufacturers to unaffiliated marijuana facilities.

(2)" and insert "(1)"

On the previously adopted amendment (1045C), On page 2, line 7, delete "(3) "Manufacturer," a licensed entity that acquires, possesses, manufactures, delivers, transfers, transports, supplies, or sells marijuana products to a marijuana facility;

(4) "Marijuana facility," an entity licensed to cultivate, test, manufacture, or dispense marijuana or marijuana products;

(5)" and insert "(2)"

On the previously adopted amendment (1045C), On page 2, line 13, delete "(6)" and insert "(3)"

On the previously adopted amendment (1045C), On page 2, line 16, delete "(6)" and insert "(4)"

On the previously adopted amendment (1045C), On page 2, line 19, delete "There is hereby levied an excise tax on the first sale or transfer of unprocessed marijuana by a marijuana cultivation facility, at a rate of fifteen percent of the average market rate of the unprocessed marijuana if the transaction is between affiliated marijuana business licensees. There is levied a tax on the first sale or transfer of unprocessed marijuana by a marijuana cultivation facility, at a rate of fifteen percent of the contract price for unprocessed marijuana if the transaction is between unaffiliated retail marijuana business licensees. Marijuana excise tax shall also be calculated as fifteen percent of the contract price when the first transfer of marijuana that has been harvested for sale at a retail marijuana store or extraction by a marijuana product manufacturing facility is between unaffiliated retail marijuana cultivation facilities. The tax shall be imposed at the time when the marijuana cultivation facility first sells or transfers unprocessed marijuana from the marijuana cultivation facility to a marijuana product manufacturing facility or a marijuana store. This tax is in lieu of the tax imposed pursuant to § 10-45-2. The Department shall establish, by rules adopted under chapter 1-26, the method for calculating the average market rate." and insert " There is imposed an excise tax at the rate of eight and one-half percent on the gross receipts from the sale of marijuana, marijuana concentrate, and marijuana products by a dispensary. The excise tax imposed under this chapter does not apply to gross receipts from the sale of marijuana, marijuana concentrate, and marijuana products to a cardholder as defined in § 34-20G-1(6)."

On the previously adopted amendment (1045C), On page 3, line 2, delete "Each manufacturer liable for the payment of taxes levied under this chapter shall file with the secretary of revenue a return, on a form prescribed by the secretary, showing the kind and quantity of marijuana manufactured, received, and in the manufacturer's possession, together with the names of the persons from whom received, the amount of tax due, and any other information prescribed by the secretary. The return, covering the period of one calendar month, together with payment of the tax due, must be transmitted to the Department of Revenue on or before the twenty-fifth day of the second month following the close of the reporting period. A violation of this section is a Class 1 misdemeanor." and insert " The excise tax revenue collected pursuant to section 3 of this Act must be divided proportionally amongst the counties based on where the revenue was generated. The revenue must be distributed to the county by September first of each year to be used for the purposes set forth in section 1 of this Act."

On the previously adopted amendment (1045C), On page 3, line 12, delete "Any manufacturer required to file returns or reports under this chapter, who fails to file a return or report or pay the tax when due, is subject to interest and penalty at the rates set forth in § 10-59-6. For reasonable cause shown, the secretary of revenue may reduce or eliminate the penalty. If any manufacturer files a false or fraudulent return, an amount equal to the tax evaded, or attempted to be evaded, shall be added to the tax. Penalty and interest are considered the same as tax for the purposes of collection and enforcement, including liens, distress warrants, and criminal violations. Any payment received for taxes, penalty, or interest is applied first to tax, beginning with the oldest delinquency, then to interest, and then to penalty. No court may enjoin the collection of the tax or civil penalty." and insert " The excise tax imposed under section 3 of this Act shall be collected and remitted pursuant to chapter 10-45 and administered pursuant to chapter 10-59"

On the previously adopted amendment (1045C), On page 3, line 22, after "penalty." delete "Section 7. That a NEW SECTION be added to title 10:

On the previously adopted amendment (1045C), On page 3, line 23, after "10:" delete "Any manufacturer liable for the payment of the taxes shall keep, in current and available form on the licensed premises, records of all purchases, sales, quantities on hand, and any other information the secretary of revenue may prescribe by rule promulgated pursuant to chapter 1-26. The secretary of revenue may require from a manufacturer any report necessary to administer the requirements of this chapter. The secretary may require the production of any book, record, document, invoice, and voucher kept, maintained, received, or issued by the manufacturer in connection with the manufacturer's business that, in the judgment of the secretary, may be necessary to administer and discharge the secretary's duties, to secure the maximum of revenue to be paid, and to carry out the requirements of this chapter. A violation of this section is a Class 1 misdemeanor."