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California: Medical Marijuana Sales Tax Exemption for Hospice Patients

  • Apr 3, 2013 | Gail Cole

 If the California BOE has its way, sales of medical marijuana will be exempt for hospice patients.

The California State Board of Equalization is backing legislation to exempt medical marijuana from sales tax when it is purchased by “Californians in hospice care” or their caregivers.

BOE Chairman Jerome E. Horton said that the measure “eliminates sales tax on purchases of medicine that relieves the pain and suffering faced by our loved ones during their final days.” He pointed out that “[t]his measure is consistent with similar laws which exempt the purchases of many medications from sales and use taxes.”

Amir Daliri, Director of Government Relations for the California Cannabis Association, backs the measure. He notes that the “legislation would provide the needed relief for these patients and ensure the integrity of the medical marijuana system in California.”

In order to obtain the sales tax exemption, hospice patients or their caregivers would be requried to obtain a valid exemption certificate from the BOE. That certificate “would remain effectivefor the duration of their California Department of Public Health-issued Medical Marijuana Program identification.”

According to BOE estimates, “total sales of medical marijuana range between $700 million and $1.3 billion.” That translates to between $58 million to $105 million in sales and use tax revenue.

How do you handle sales and use tax exemption certificates?

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.