The CDTFA’s move to permanently enforce Reg 3802 represents a significant overreach that could drastically affect the cannabis industry by unfairly extending the 15% excise tax to include vape accessories, burdening both retailers and consumers with undue financial strain. With the deadline of September 12, 2024, looming, your participation is critical in averting this unwarranted tax imposition. Here’s your action plan:
Where To Send:
Directly Contact the CDTFA: Send your objections to Aimee Olhiser, Chief of the Tax Policy Bureau, either via email at BTFD-BTC.InformationRequests@cdtfa.ca or through traditional mail at PO BOX 942879, Sacramento, CA 94279-0092.
Tell The CDTFA What We Don’t Want Reg 3802:
We do not want the CDTFA to certify emergency Regulation 3802. We want the excise tax to revert back to the original version of Regulation 3700.
Tell The CDTFA Why Reg. 3802 Is Illegal:
- Beyond Legislative Intent: Neither Prop 64 nor AB 195 authorize the 15% excise tax on vape accessories. This inclusion by the CDTFA with Reg. 3802 exceeds the legislative mandate, diverging from the voter-approved propositions and legislative acts.
- Contradicts Tax Objectives: AB 195 emphasizes the need to regulate the cannabis market to combat the illicit market. By increasing taxes significantly, Reg 3802 could push consumers back to illegal channels, contrary to the intent of reducing barriers and making the legal market more accessible.
- Original Tax Guidelines: Reg. 3700 stipulates that excise taxes apply only to the cannabis products if cannabis accessories are priced separately. This guideline was overridden without voter consent in Reg. 3802.
- Rushed Process: The emergency introduction and swift approval of Reg. 3802 within 15 days by the Office of Administrative Law lacked proper public participation, violating the Administrative Procedures Act which demands reasonable public engagement.
- Lack of Notification: Changes to Reg. 3700 that included taxes on vape accessories were implemented without adequate public notice or an opportunity for comment, breaching standard legal procedures for tax regulation amendments.
Immediate Action Needed:
Emphasize the urgency of submitting comments before the September 12 deadline to halt this detrimental regulation.
Together, by voicing our concerns and highlighting the regulation’s inconsistencies with established legal frameworks, we can safeguard the interests of the cannabis industry and promote fair taxation. Your voice is essential in this pivotal moment—act now to support the legal cannabis market.
