SB111,2267 Section 2267 . 139.83 of the statutes is renumbered 139.83 (1).

SB111,2268 Section 2268 . 139.83 (2) of the statutes is created to read:

SB111,1219,2 139.83 (2) Sections 139.315, 139.32, 139.321, 139.322, 139.34, 139.35, 139.36, 139.362, 139.363, 139.38, 139.395, 139.41, 139.42, 139.43, and 139.44 (8), as they apply to the taxes under subch. II, apply to the administration and enforcement of this subchapter for little cigars.

SB111,2269 Section 2269 . Subchapter IV of chapter 139 [precedes 139.97] of the statutes is created to read:

SB111,1219,5 chapter 139

SB111,1219,6 subchapter Iv

SB111,1219,7 marijuana tax and regulation

SB111,1219,8 139.97 Definitions. In this subchapter:

SB111,1219,9 (1) “Department" means the department of revenue.

SB111,1219,12 (2) “Lot" means a definite quantity of marijuana or usable marijuana identified by a lot number, every portion or package of which is consistent with the factors that appear in the labeling.

SB111,1219,14 (3) “Lot number" means a number that specifies the person who holds a valid permit under this subchapter and the harvesting or processing date for each lot.

SB111,1219,15 (4) “Marijuana" has the meaning given in s. 961.70 (3).

SB111,1219,19 (5) “Marijuana distributor” means a person in this state who purchases or receives usable marijuana from a marijuana processor and who sells or otherwise transfers the usable marijuana to a marijuana retailer for the purpose of resale to consumers.

SB111,1219,23 (6) “Marijuana processor" means a person in this state who processes marijuana into usable marijuana, packages and labels usable marijuana for sale in retail outlets, and sells at wholesale or otherwise transfers usable marijuana to marijuana distributors.

SB111,1219,25 (7) “Marijuana producer" means a person in this state who produces marijuana and sells it at wholesale or otherwise transfers it to marijuana processors.

SB111,1220,2 (8) “Marijuana retailer" means a person in this state that sells usable marijuana at a retail outlet.

SB111,1220,5 (9) “Microbusiness” means a marijuana producer that produces marijuana in one area that is less than 10,000 square feet and who also operates as any 2 of the following:

SB111,1220,6 (a) A marijuana processor.

SB111,1220,7 (b) A marijuana distributor.

SB111,1220,8 (c) A marijuana retailer.

SB111,1220,11 (10) “Permittee" means a marijuana producer, marijuana processor, marijuana distributor, marijuana retailer, or microbusiness that is issued a permit under s. 139.972.

SB111,1220,12 (11) “Retail outlet" means a location for the retail sale of usable marijuana.

SB111,1220,13 (12) “Sales price" has the meaning given in s. 77.51 (15b).

SB111,1220,16 (13) “Usable marijuana" means marijuana that has been processed for human consumption and includes dried marijuana flowers, marijuana-infused products, and marijuana edibles.

SB111,1220,21 139.971 Marijuana tax. (1) (a) An excise tax is imposed on a marijuana producer at the rate of 15 percent of the sales price on each wholesale sale or transfer in this state of marijuana to a marijuana processor. This paragraph applies to a microbusiness that transfers marijuana to a processing operation within the microbusiness.

SB111,1220,25 (b) An excise tax is imposed on a marijuana retailer at the rate of 10 percent of the sales price on each retail sale in this state of usable marijuana, except that the tax does not apply to sales of usable marijuana to an individual who holds a valid tax exemption certificate issued under s. 73.17 (4).

SB111,1221,4 (2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes to the department no later than the 15th day of the month following the month in which the person's tax liability is incurred and shall include with the payment a return on a form prescribed by the department.

SB111,1221,9 (3) For purposes of this section, a marijuana producer may not sell marijuana directly to a marijuana distributor or marijuana retailer, and a marijuana retailer may purchase usable marijuana for resale only from a marijuana distributor. This subsection does not apply to a microbusiness that transfers marijuana or usable marijuana to another operation with the microbusiness.

SB111,1221,15 139.972 Permits required. (1) (a) No person may operate in this state as a marijuana producer, marijuana processor, marijuana distributor, marijuana retailer, or microbusiness without first filing an application for and obtaining the proper permit from the department to perform such operations. In addition, no person may operate in this state as a marijuana producer or marijuana processor without first filing an application for and obtaining the proper permit under s. 94.56.