SSB 3186 Excise Tax

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carlolsen
Posts: 17
Joined: Wed Feb 07, 2024 1:39 pm

SSB 3186 Excise Tax

Post by carlolsen »

https://www.legis.iowa.gov/legislation/ ... ba=ssb3186

A 25% excise tax on consumable hemp products should level the playing field with the federal racketeering scheme they invented for the medical side.
Matm
Site Admin
Posts: 17
Joined: Wed Feb 07, 2024 2:11 am

Re: SSB 3186 Excise Tax

Post by Matm »

Senate Study Bill 3186

https://www.legis.iowa.gov/legislation/ ... ba=SSB3186

Aims to establish an excise tax on the sales of consumable hemp products.
Here are the key points you need to be aware of:

1. Excise Tax Rate: The bill proposes a hefty excise tax of 25% on the sales price or purchase price of all consumable hemp products sold or used in the state of Iowa.
2. Tax Administration: The Department of Revenue is tasked with administering the excise tax, aligning its administration as closely as possible with the existing state sales and use tax laws.
3. Exemptions: While certain sales are exempt from this excise tax, it's crucial to understand the limitations. The bill exempts the sales price from products that the state is prohibited from taxing under the United States Constitution or the Iowa State Constitution. Additionally, sales for resale of consumable hemp products are also exempt.
4. Registration and Reporting: The director of revenue may require businesses engaged in the sale or purchase of consumable hemp products subject to this tax to register with the department. Retailers and users may also be required to obtain a tax permit specific to this chapter.
5. Tax Collection: All taxes collected under this chapter by retailers or users are considered to be held in trust for the state of Iowa.
It is essential that we closely monitor the developments of this bill and understand its potential impact on our operations. Please review the full text of the bill for a comprehensive understanding of its implications.
We will continue to keep you informed of any updates or changes related to this proposed legislation. If you have any questions or concerns, please do not hesitate to reach out.
Thank you for your attention to this matter.
Best regards,

ICanna LLC
EagleRidgeHemp
Posts: 9
Joined: Wed Feb 07, 2024 6:50 pm

Re: SSB 3186 Excise Tax

Post by EagleRidgeHemp »

3. Exemptions: While certain sales are exempt from this excise tax, it's crucial to understand the limitations. The bill exempts the sales price from products that the state is prohibited from taxing under the United States Constitution or the Iowa State Constitution. Additionally, sales for resale of consumable hemp products are also exempt.

What products is the state prohibited from taxing?
EagleRidgeHemp
Posts: 9
Joined: Wed Feb 07, 2024 6:50 pm

Re: SSB 3186 Excise Tax

Post by EagleRidgeHemp »

Thanks again to Carl Olsen for posting these videos to youtube. Please check out Senator Dawson on the most recent video, Iowa Senate Study Bill 3186 2024-03-20, (https://youtu.be/48sH-Rqrk6w?si=D4ge20x0c5CuLlGV). I don't even know what to say. It's hard to believe he is even saying what he is saying in this committee meeting, that there is a "tax disparity" between liquor/alcohol and hemp products, "based upon them being vice products". That is his reasoning behind a 25% exise tax? He also says " I hate to negotiate out in public". What?
Matm
Site Admin
Posts: 17
Joined: Wed Feb 07, 2024 2:11 am

Re: SSB 3186 Excise Tax

Post by Matm »

This bill has been renumbered to SF 2417 with some changes. The 25% tax only applies to sales in bars and restaurants and the 7% sales tax is exempted so the effective tax increase is 18%.

https://www.legis.iowa.gov/legislation/ ... =SF%202417

https://www.legis.iowa.gov/docs/publica ... 448333.pdf
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