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LD 1654

An Act To Allow A Grace Period For The Payment Of Excise Tax For Adult Use Cannabis Cultivation Facilities

132nd Legislature (2025-2026) Introduced by Bruce Bickford and 8 co-sponsors

The bill exempts certain intra-industry transfers of adult-use cannabis from excise tax, primarily for transfers to cultivation facilities and short-term transfers to manufacturers

Became Law without Governor's Signature
#cannabis #excisetax #miscellaneoustaxes
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WeVote Research Nonpartisan
Bill Summary · LD 1654

Summary — LD 1654

Title: An Act To Allow A Grace Period for the Payment of Excise Tax for Adult Use Cannabis Cultivation Facilities
Bill No.: LD 1654 | Introduced: April 15, 2025 | Subject: Cannabis, Excise Tax, Miscellaneous Taxes
Status: Passed both chambers; HELD BY THE GOVERNOR (as of 2025-07-08)

Purpose / Intent

The bill (as passed with amendments) is intended to change how excise tax is applied to certain transfers of adult‑use cannabis between licensed businesses — primarily to exempt some transfers to cultivation facilities (and limited transfers to manufacturers when returned to cultivation within a short window). The intent is to reduce tax burden / avoid double taxation on intra‑industry transfers and to clarify application of excise tax for these operations.

Key provisions (as enacted by amendment)

  • Creates an excise‑tax exemption for sales or transfers of adult‑use cannabis to licensed cultivation facilities.
  • Creates an excise‑tax exemption for transfers to licensed manufacturing facilities provided the cannabis is returned to the cultivation facility within 30 days.
  • A proposed provision that would have made excise tax payment due 120 days after filing for periods beginning Jan 1, 2026 was removed by amendment and is not included in the enacted version.
  • A proposed one‑time $21,200 General Fund appropriation for Bureau of Revenue Services programming (to implement the delayed‑payment provision) was removed by amendment.

Who is affected

  • Primary beneficiaries: licensed adult‑use cannabis cultivation facilities and, in limited cases, manufacturing facilities (improved cash flow and reduced instances of excise tax being applied to temporary transfers).
  • State government: Bureau of Revenue Services (BRS) — minimal implementation changes now; BRS appropriation removed.
  • State funds: General Fund and the Adult Use Cannabis Public Health & Safety and Municipal Opt‑in Fund experience reduced excise tax receipts.

Fiscal impact (per legislative fiscal notes)

  • Original bill (before removal of delayed‑payment provision): large near‑term revenue losses (General Fund ≈ $5.95 million FY2025‑26; $530,000 FY2026‑27) and Other Special Revenue Fund (Adult Use Cannabis Public Health & Safety and Municipal Opt‑in) losses ≈ $816,000 FY2025‑26 and $78,000 FY2026‑27; plus a $21,200 one‑time GF appropriation.
  • As amended (final enacted text): the delayed‑payment change and the $21,200 appropriation were removed, substantially reducing the revenue impact. The fiscal office reports remaining estimated revenue decreases of approximately:
    • General Fund: ~$2,000 in FY2025‑26 and ~$4,000 in FY2026‑27.
    • Adult Use Cannabis Public Health & Safety and Municipal Opt‑in Fund: effectively $0 in FY2025‑26 and ~ $1,000 in FY2026‑27 (small residual impacts). (These are the fiscal‑note estimates prepared June 2025 and reflect short‑term projection years FY2025‑26 and FY2026‑27.)

Procedural history / timeline

  • Referred to Committee on Taxation (4/15/2025); reported OTP‑AM and committee amendment H‑620 adopted.
  • Senate adopted Senate Amendment S‑480 to Committee Amendment H‑620; bill passed both chambers as amended and was sent for enactment (June 2025).
  • Status: HELD BY THE GOVERNOR (7/8/2025).

If you want, I can extract the exact statutory text changes, list affected statute sections, or produce a one‑page plain‑language explainer for businesses.

Compiled from official sources — confirm details with the bill’s official record.

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