59-31 - Cannabinoid Licensing and Tax Act
Title 59 > 59-31
Sections (8)
General Provisions.
59-31-101 - Definitions.
As used in this chapter:
(1) “Cannabinoid product” means the same as that term is defined in Section 4-41-102.
(2) “Licensee” means a retailer that holds a valid license under Part 2, Licensing, to sell a cannabinoid product.
(3) “Retail price” means the amount charged by a retailer for a cannabinoid product.
(4) “Retailer” means a person that sells a cannabionoid product to a consumer for personal use.
Enacted by Chapter 35, 2024 General Session
Licensing.
59-31-201 - Prohibition on the sale of a cannabinoid product without license.
(1) A person may not sell, offer to sell, or distribute a cannabinoid product in this state without first:obtaining a license from the commission under Section 59-31-202; andcomplying with the bonding requirement described in Section 59-31-202.
(2) It is a class B misdemeanor for a person to violate Subsection (1).
Enacted by Chapter 35, 2024 General Session
59-31-202 - Issuance of license.
(1) The commission shall issue a license to sell a cannabinoid product to a retailer that submits an application, on a form created by the commission, that includes:the retailer’s name;the address of the location permitted under Section 4-41-103.3 where the retailer sells the cannabinoid product; andany other information the commission requires to implement this chapter.
(2) A license is:valid at only one fixed business address;valid for three years;valid only for a physical location; andrenewable if a licensee meets the criteria for licensing described in Subsection (1).
(3) The commission shall require a retailer that is responsible under this part for the collection of tax on a cannabinoid product to post a bond.Subject to Subsection (3)(c), the commission shall determine the form and amount of the bond.The minimum amount of the bond shall be $500.
(4) In accordance with Title 63G, Chapter 3, Utah Rulemaking Authority, the commission may make rules to establish the additional information described in Subsection (1)(c) that a retailer shall provide in the application described in Subsection (1).
(5) The commission may not charge a fee for a license under this section.
(6) The license under this section is in addition to a license required under Section 4-41-103.3.
(7) The commission shall maintain a public list that includes the identity of each person licensed under this section.The list shall:include the type of license possessed; andbe updated by the commission at least once per quarter.
Enacted by Chapter 35, 2024 General Session
59-31-203 - License revocation and reinstatement.
(1) The commission shall, on a reasonable notice and after a hearing, revoke the license of any licensee violating any provisions of this chapter.
(2) A license may not be reissued to a licensee described in Subsection (1) until the licensee has complied with the requirements of this chapter, including paying any:tax due under Part 3, Tax;penalty as provided in Section 59-1-401; andinterest as provided in Section 59-1-402.
Enacted by Chapter 35, 2024 General Session
Tax
59-31-301 - Taxation of cannabinoid product.
(1) A tax is imposed on a cannabinoid product at a rate of .10 multiplied by the retail price.
(2) A licensee shall collect the tax imposed under Subsection (1) from a purchaser at the time the cannabinoid product is sold.A consumer that purchases or receives an untaxed cannabinoid product shall pay the tax at the time the cannabinoid product is first received in this state.
Enacted by Chapter 35, 2024 General Session
59-31-302 - Remittance of tax.
(1) The licensee that collects the tax imposed on a cannabinoid product shall remit to the commission, in an electronic format approved by the commission:the tax due in the previous quarter; andthe tax return.The tax collected and the return are due on or before the last day of April, July, October, and January.
(2) A licensee that sells a cannabinoid product to a purchaser shall maintain records to determine the amount of tax due under this part for a period of three years.
(3) A consumer that receives or purchases an untaxed cannabinoid product for use or other consumption shall:file with the commission, on a form provided by the commission, a statement showing the quantity and description of the cannabinoid product subject to tax under this part; andpay the tax imposed by this part on the cannabinoid product.The consumer shall file the statement described in Subsection (3)(a) and pay the tax due on or before the last day of the month immediately following the month during which the consumer purchased an untaxed cannabinoid product.A consumer shall maintain records necessary to determine the amount of tax the consumer is liable to pay under this part for a period of three years after the day on which the consumer filed the statement required by this section.
(4) A tourist who imports an untaxed cannabinoid product into the state does not need to file the statement described in Subsection (3) or pay the tax if the cannabinoid product is for the tourist’s own use or consumption while in this state.
(5) In addition to the tax required by this part, a person shall pay a penalty as provided in Section 59-1-401, plus interest at the rate and in the manner provide in Section 59-1-402, if a person subject to this section fails to:pay the tax imposed by this part;pay the tax on time; orfile a return or statement required by this part.
(6) An overpayment of a tax imposed by this part shall accrue interest at the rate and in the manner provided in Section 59-1-402.
(7) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from revenue generated by the tax under this part.The commission shall deposit 47% of the revenue generated by the tax imposed by this part into the General Fund and the remaining revenue into the Cannabinoid Proceeds Restricted Account created in Section 59-31-401.
Enacted by Chapter 35, 2024 General Session
Miscellaneous Provisions.
59-31-401 - Cannabinoid Proceeds Restricted Account.
(1) There is created within the General Fund a restricted account known as the “Cannabinoid Proceeds Restricted Account.”
(2) The Cannabinoid Proceeds Restricted Account consists of:revenue collected from the tax imposed by Section 59-31-301; andamounts appropriated by the Legislature.
(3) Subject to appropriation, money in the account may be used for the following:enforcement of Title 4, Chapter 41, Hemp and Cannabinoid Act by the Department of Agriculture and Food;investigations described in Section 77-39-101, regarding cannabinoid products;the Industrial Hemp Grant Program created in Section 63N-3-1302; andprovided to counties, cities, and towns in proportion to the county’s, city’s, or town’s distribution under Section 59-12-205 for the preceding fiscal year.
Enacted by Chapter 35, 2024 General Session
59-31-402 - Report to Department of Agriculture and Food of illegal cannabinoid product.
If the commission suspects that a cannabinoid product is being sold in the state in violation of a law other than a law described in this chapter, the commission shall report the name and tax identification number of the seller and the cannabinoid product:
(1) to the Department of Agriculture and Food; and
(2) within 30 days after the day on which the commission becomes aware of the sale.
Enacted by Chapter 35, 2024 General Session