“Sales price" has the meaning given in s. 77.51 (15b).
“Usable marijuana" means marijuana that has been processed for human 24
consumption and includes dried marijuana flowers, marijuana-infused products, 25
and marijuana edibles.
1139.971 Marijuana tax.
(a) An excise tax is imposed on a marijuana 2
producer at the rate of 15 percent of the sales price on each wholesale sale or transfer 3
in this state of marijuana to a marijuana processor. This paragraph applies to a 4
microbusiness that transfers marijuana to a processing operation within the 5
(b) An excise tax is imposed on a marijuana retailer at the rate of 10 percent 7
of the sales price on each retail sale in this state of usable marijuana.
Each person liable for the taxes imposed under sub. (1) shall pay the taxes 9
to the department no later than the 15th day of the month following the month in 10
which the person's tax liability is incurred and shall include with the payment a 11
return on a form prescribed by the department.
For purposes of this section, a marijuana producer may not sell marijuana 13
directly to a marijuana distributor or marijuana retailer, and a marijuana retailer 14
may purchase usable marijuana for resale only from a marijuana distributor. This 15
subsection does not apply to a microbusiness that transfers marijuana or usable 16
marijuana to another operation with the microbusiness.
17139.972 Permits required. (1)
(a) No person may operate in this state as a 18
marijuana producer, marijuana processor, marijuana distributor, marijuana 19
retailer, or microbusiness without first filing an application for and obtaining the 20
proper permit from the department to perform such operations. In addition, no 21
person may operate in this state as a marijuana producer or marijuana processor 22
without first filing an application for and obtaining the proper permit under s. 94.56.
(b) This section applies to all officers, directors, agents, and stockholders 24
holding 5 percent or more of the stock of any corporation applying for a permit under 25
(c) Subject to ss. 111.321, 111.322, and 111.335, a permit under this section may 2
not be granted to any person to whom any of the following applies:
1. The person has been convicted of a violent misdemeanor, as defined in s. 4
941.29 (1g) (b), at least 3 times.
2. The person has been convicted of a violent felony, as defined in s. 941.29 (1g) 6
(a), unless pardoned.
3. During the preceding 3 years, the person has been committed under s. 51.20 8
for being drug dependent.
4. The person chronically and habitually uses alcohol beverages or other 10
substances to the extent that his or her normal faculties are impaired. A person is 11
presumed to chronically and habitually use alcohol beverages or other substances to 12
the extent that his or her normal faculties are impaired if, within the preceding 3 13
years, any of the following applies:
a. The person has been committed for involuntary treatment under s. 51.45 15
b. The person has been convicted of a violation of s. 941.20 (1) (b).
c. In 2 or more cases arising out of separate incidents, a court has found the 18
person to have committed a violation of s. 346.63 or a local ordinance in conformity 19
with that section; a violation of a law of a federally recognized American Indian tribe 20
or band in this state in conformity with s. 346.63; or a violation of the law of another 21
jurisdiction, as defined in s. 340.01 (41m), that prohibits use of a motor vehicle while 22
intoxicated, while under the influence of a controlled substance, a controlled 23
substance analog, or a combination thereof, with an excess or specified range of 24
alcohol concentration, or while under the influence of any drug to a degree that
renders the person incapable of safely driving, as those or substantially similar 2
terms are used in that jurisdiction's laws.
5. The person has income that comes principally from gambling or has been 4
convicted of 2 or more gambling offenses.
6. The person has been guilty of crimes relating to prostitution.
7. The person has been guilty of crimes relating to loaning money or anything 7
of value to persons holding licenses or permits pursuant to ch. 125.
8. The person is under the age of 21.
9. The person has not been a resident of this state continuously for at least 90 10
days prior to the application date.
(cm) Notwithstanding ss. 66.0134 and 947.21, an applicant with 20 or more 12
employees may not receive a permit under this section to operate as a marijuana 13
distributor or marijuana retailer unless the applicant certifies to the department 14
that the applicant has entered into a labor peace agreement, as defined in s. 94.56 15
(1) (a), and will abide by the terms of the agreement as a condition of maintaining 16
a valid permit under this section. The applicant shall submit to the department a 17
copy of the page of the labor peace agreement that contains the signatures of the 18
union representative and the applicant.
(cn) The department shall use a competitive scoring system to determine which 20
applicants are eligible to receive a permit under this section. The department shall 21
issue permits to the highest scoring applicants that it determines will best protect 22
the environment; provide stable, family-supporting jobs to local residents; ensure 23
worker and consumer safety; operate secure facilities; and uphold the laws of the 24
jurisdictions in which they operate. The department may deny a permit to an 25
applicant with a low score, as determined under this paragraph. The department
may request that the applicant provide any information or documentation that the 2
department deems necessary for purposes of making a determination under this 3
(d) 1. Before the department issues a new or renewed permit under this section, 5
the department shall give notice of the permit application to the governing body of 6
the municipality where the permit applicant intends to operate the premises of a 7
marijuana producer, marijuana processor, marijuana distributor, marijuana 8
retailer, or microbusiness. No later than 30 days after the department submits the 9
notice, the governing body of the municipality may file with the department a written 10
objection to granting or renewing the permit. At the municipality's request, the 11
department may extend the period for filing objections.
2. A written objection filed under subd. 1. shall provide all the facts on which 13
the objection is based. In determining whether to grant or deny a permit for which 14
an objection has been filed under this paragraph, the department shall give 15
substantial weight to objections from a municipality based on chronic illegal activity 16
associated with the premises for which the applicant seeks a permit, the premises 17
of any other operation in this state for which the applicant holds or has held a valid 18
permit or license, the conduct of the applicant's patrons inside or outside the 19
premises of any other operation in this state for which the applicant holds or has held 20
a valid permit or license, and local zoning ordinances. In this subdivision, “
illegal activity" means a pervasive pattern of activity that threatens the public 22
health, safety, and welfare of the municipality, including any crime or ordinance 23
violation, and is documented in crime statistics, police reports, emergency medical 24
response data, calls for service, field data, or similar law enforcement agency records.
(e) After denying a permit, the department shall immediately notify the 2
applicant in writing of the denial and the reasons for the denial. After making a 3
decision to grant or deny a permit for which a municipality has filed an objection 4
under par. (d), the department shall immediately notify the governing body of the 5
municipality in writing of its decision and the reasons for the decision.
(f) 1. The department's denial of a permit under this section is subject to judicial 7
review under ch. 227.
2. The department's decision to grant a permit under this section regardless of 9
an objection filed under par. (d) is subject to judicial review under ch. 227.
(g) The department shall not issue a permit under this section to any person 11
who does not hold a valid certificate under s. 73.03 (50).
Each person who applies for a permit under this section shall submit with 13
the application a $250 fee. Each person who is granted a permit under this section 14
shall annually pay to the department a $2,000 fee for as long as the person holds a 15
valid permit under this section. A permit issued under this section is valid for one 16
year and may be renewed, except that the department may revoke or suspend a 17
permit prior to its expiration. A person is not entitled to a refund of the fees paid 18
under this subsection if the person's permit is denied, revoked, or suspended.
The department may not issue a permit under this section to operate any 20
premises which are within 500 feet of the perimeter of the grounds of any elementary 21
or secondary school, playground, recreation facility, child care facility, public park, 22
public transit facility, or library.
Under this section, a separate permit is required for and issued to each class 24
of permittee, and the permit holder may perform only the operations authorized by 25
the permit. A permit issued under this section is not transferable from one person
to another or from one premises to another. A separate permit is required for each 2
place in this state where the operations of a marijuana producer, marijuana 3
processor, marijuana distributor, marijuana retailer, or microbusiness occur, 4
including each retail outlet. No person who has been issued a permit to operate as 5
a marijuana retailer, or who has any direct or indirect financial interest in the 6
operation of a marijuana retailer, shall be issued a permit to operate as a marijuana 7
producer, marijuana processor, or marijuana distributor. A person who has been 8
issued a permit to operate as a microbusiness is not required to hold separate permits 9
to operate as a marijuana processor, marijuana distributor, or marijuana retailer, 10
but shall specify on the person's application for a microbusiness permit the activities 11
that the person will be engaged in as a microbusiness.
Each person issued a permit under this section shall post the permit in a 13
conspicuous place on the premises to which the permit relates.
14139.973 Regulation. (1)
(a) No permittee may employ an individual who is 15
under the age of 21 to work in the business to which the permit relates.
(b) Subject to ss. 111.321, 111.322, and 111.335, no permittee may employ an 17
individual if any of the conditions under s. 139.972 (1) (c) 1. to 7. applies to the 18
A retail outlet shall sell no products or services other than usable marijuana 20
or paraphernalia intended for the storage or use of usable marijuana.
No marijuana retailer may allow a person who is under the age of 21 to enter 22
or be on the premises of a retail outlet in violation of s. 961.71 (2m).
The maximum amount of usable marijuana that a retail outlet may sell to 24
an individual consumer in a single transaction may not exceed the permissible 25
amount under s. 961.70 (5).
A marijuana retailer may not collect, retain, or distribute personal 2
information regarding the retailer's customers except that which is necessary to 3
complete a sale of usable marijuana.
No marijuana retailer may display any signage in a window, on a door, or 5
on the outside of the premises of a retail outlet that is visible to the general public 6
from a public right-of-way, other than a single sign that is no larger than 1,600 7
square inches identifying the retail outlet by the permittee's business or trade name.
No marijuana retailer may display usable marijuana in a manner that is 9
visible to the general public from a public right-of-way.
No marijuana retailer or employee of a retail outlet may consume, or allow 11
to be consumed, any usable marijuana on the premises of the retail outlet.
A marijuana retailer may operate a retail outlet only between the hours 13
of 8 a.m. and 8 p.m.
Except as provided under sub. (5), no marijuana producer, marijuana 15
processor, marijuana distributor, marijuana retailer, or microbusiness may place or 16
maintain, or cause to be placed or maintained, an advertisement of usable marijuana 17
in any form or through any medium.
(a) On a schedule determined by the department, every marijuana 19
producer, marijuana processor, or microbusiness shall submit representative 20
samples of the marijuana and usable marijuana produced or processed by the 21
marijuana producer, marijuana processor, or microbusiness to a testing laboratory 22
registered under s. 50.86 for testing marijuana and usable marijuana in order to 23
certify that the marijuana and usable marijuana comply with standards prescribed 24
by the department by rule, including testing for potency and for mold, fungus,
pesticides, and other contaminants. The laboratory testing the sample shall destroy 2
any part of the sample that remains after the testing.
(b) Marijuana producers, marijuana processors, and microbusinesses shall 4
submit the results of the testing provided under par. (a) to the department in the 5
manner prescribed by the department by rule.
(c) If a representative sample tested under par. (a) does not meet the standards 7
prescribed by the department, the department shall take the necessary action to 8
ensure that the entire lot from which the sample was taken is destroyed. The 9
department shall promulgate rules to determine lots and lot numbers for purposes 10
of this subsection and for the reporting of lots and lot numbers to the department.
(a) A marijuana processor or a microbusiness that operates as a marijuana 12
processor shall affix a label to all usable marijuana that the marijuana processor or 13
microbusiness sells to marijuana distributors. The label may not be designed to 14
appeal to persons under the age of 18. The label shall include all of the following:
1. The ingredients and the tetrahydrocannabinols concentration in the usable 16
2. The producer's business or trade name.
3. The licensee or registrant number.
4. The unique identification number.
5. The harvest date.
6. The strain name and product identity.
7. The net weight.
8. The activation time.
9. The name of laboratory performing any test, the test batch number, and the 25
test analysis dates.
10. The logotype for recreational marijuana developed by the department of 2
agriculture, trade and consumer protection under s. 100.145, or the logotype for 3
medical marijuana developed by the department of health services under s. 146.46, 4
whichever is appropriate.
11. Warnings about all of the following:
a. Risks of marijuana use and pregnancy and risks of marijuana use by persons 7
under the age of 18.
b. The prohibitions under ss. 23.33 (4c) (a) 2g. and 3g. and (b) 2n., 30.681 (1) 9
(b) 1g. and (bn) 2. and (2) (b) 1g., 343.10 (5) (a) 2., 343.12 (7) (a) 11., 346.63 (1) (b), (2) 10
(a) 2., and (2p), and 350.101 (1) (bg) and (cg) and (2) (bg).
(b) No marijuana processor or microbusiness that operates as a marijuana 12
processor may make usable marijuana using marijuana grown outside this state. 13
The label on each package of usable marijuana may indicate that the usable 14
marijuana is made in this state.
(a) No permittee may sell marijuana or usable marijuana that contains 16
more than 3 parts tetrahydrocannabinols to one part cannabidiol.
(b) No permittee may sell marijuana or usable marijuana that tests positive 18
under sub. (9) (a) for mold, fungus, pesticides, or other contaminants if the 19
contaminants, or level of contaminants, are identified by a testing laboratory to be 20
potentially unsafe to the consumer.
Immediately after beginning employment with a permittee, every 22
employee of a permittee shall receive training, approved by the department, on the 23
safe handling of marijuana and usable marijuana and on security and inventory 24
1139.974 Records and reports. (1)
Every permittee shall keep accurate and 2
complete records of the production and sales of marijuana and usable marijuana in 3
this state. The records shall be kept on the premises described in the permit and in 4
such manner as to ensure permanency and accessibility for inspection at reasonable 5
hours by the department's authorized personnel. The department shall prescribe 6
reasonable and uniform methods of keeping records and making reports and shall 7
provide the necessary forms to permittees.
If the department determines that any permittee's records are not kept in 9
the prescribed form or are in such condition that the department requires an unusual 10
amount of time to determine from the records the amount of the tax due, the 11
department shall give notice to the permittee that the permittee is required to revise 12
the permittee's records and keep them in the prescribed form. If the permittee fails 13
to comply within 30 days, the permittee shall pay the expenses reasonably 14
attributable to a proper examination and tax determination at the rate of $30 a day 15
for each auditor used to make the examination and determination. The department 16
shall send a bill for such expenses, and the permittee shall pay the amount of such 17
bill within 10 days.
If any permittee fails to file a report when due, the permittee shall be 19
required to pay a late filing fee of $10. A report that is mailed is filed on time if it is 20
mailed in a properly addressed envelope with postage prepaid, the envelope is 21
officially postmarked, or marked or recorded electronically as provided under section 227502
(f) (2) (c) of the Internal Revenue Code, on the date due, and the report is 23
actually received by the department or at the destination that the department 24
prescribes within 5 days of the due date. A report that is not mailed is timely if it 25
is received on or before the due date by the department or at the destination that the
department prescribes. For purposes of this subsection, “mailed" includes delivery 2
by a delivery service designated under section 7502
(f) of the Internal Revenue Code.
Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m., relating 4
to confidentiality of income, franchise, and gift tax returns, apply to any information 5
obtained from any permittee under this subchapter on a tax return, report, schedule, 6
exhibit, or other document or from an audit report relating to any of those documents, 7
except that the department shall publish production and sales statistics.
8139.975 Administration and enforcement. (1)
The department shall 9
administer and enforce this subchapter and promulgate rules necessary to 10
administer and enforce this subchapter.
The duly authorized employees of the department have all necessary police 12
powers to prevent violations of this subchapter.
Authorized personnel of the department of justice and the department of 14
revenue, and any law enforcement officer, within their respective jurisdictions, may 15
at all reasonable hours enter the premises of any permittee and examine the books 16
and records to determine whether the tax imposed by this subchapter has been fully 17
paid and may enter and inspect any premises where marijuana or usable marijuana 18
is produced, processed, made, sold, or stored to determine whether the permittee is 19
complying with this subchapter.
The department may suspend or revoke the permit of any permittee who 21
violates s. 100.30, any provision of this subchapter, or any rules promulgated under 22
sub. (1). The department shall revoke the permit of any permittee who violates s. 23
100.30 3 or more times within a 5-year period.
No suit shall be maintained in any court to restrain or delay the collection 25
or payment of the tax levied in s. 139.971. The aggrieved taxpayer shall pay the tax
when due and, if paid under protest, may at any time within 90 days from the date 2
of payment sue the state to recover the tax paid. If it is finally determined that any 3
part of the tax was wrongfully collected, the secretary of administration shall pay the 4
amount wrongfully collected. A separate suit need not be filed for each separate 5
payment made by any taxpayer, but a recovery may be had in one suit for as many 6
payments as may have been made.
(a) Any person may be compelled to testify in regard to any violation of this 8
subchapter of which the person may have knowledge, even though such testimony 9
may tend to incriminate the person, upon being granted immunity from prosecution 10
in connection with the testimony, and upon the giving of such testimony, the person 11
shall not be prosecuted because of the violation relative to which the person has 12
(b) The immunity provided under par. (a) is subject to the restrictions under 14
The provisions on timely filing under s. 71.80 (18) apply to the tax imposed 16
under this subchapter.
Sections 71.74 (1), (2), (10), (11), and (14), 71.77, 71.91 (1) (a) and (c) and 18
(2) to (7), 71.92, and 73.0301 as they apply to the taxes under ch. 71 apply to the taxes 19
under this subchapter. Section 71.74 (13) as it applies to the collection of the taxes 20
under ch. 71 applies to the collection of the taxes under this subchapter, except that 21
the period during which notice of an additional assessment shall be given begins on 22
the due date of the report under this subchapter.
Any building or place of any kind where marijuana or usable marijuana is 24
sold, possessed, stored, or manufactured without a lawful permit or in violation of
s. 139.972 or 139.973 is declared a public nuisance and may be closed and abated as 2
At the request of the secretary of revenue, the attorney general may 4
represent this state or assist a district attorney in prosecuting any case arising under 5
The tax imposed under this subchapter does apply to the sale, distribution, 7
or delivery of medical marijuana as described in s. 50.85 (1).
8139.976 Theft of tax moneys.
All marijuana tax moneys received by a 9
permittee for the sale of marijuana or usable marijuana on which the tax under this 10
subchapter has become due and has not been paid are trust funds in the permittee's 11
possession and are the property of this state. Any permittee who fraudulently 12
withholds, appropriates, or otherwise uses marijuana tax moneys that are the 13
property of this state is guilty of theft under s. 943.20 (1), whether or not the 14
permittee has or claims to have an interest in those moneys.
15139.977 Seizure and confiscation.
All marijuana and usable marijuana 16
produced, processed, made, kept, stored, sold, distributed, or transported in violation 17
of this subchapter, and all tangible personal property used in connection with the 18
marijuana or usable marijuana is unlawful property and subject to seizure by the 19
department or a law enforcement officer. Except as provided in sub. (2), all 20
marijuana and usable marijuana seized under this subsection shall be destroyed.
If marijuana or usable marijuana on which the tax has not been paid is 22
seized as provided under sub. (1), it may be given to law enforcement officers to use 23
in criminal investigations or sold to qualified buyers by the department, without 24
notice. If the department finds that the marijuana or usable marijuana may
deteriorate or become unfit for use in criminal investigations or for sale, or that those 2
uses would otherwise be impractical, the department may order it destroyed.
If marijuana or usable marijuana on which the tax has been paid is seized 4
as provided under sub. (1), it shall be returned to the true owner if ownership can be 5
ascertained and the owner or the owner's agent is not involved in the violation 6
resulting in the seizure. If the ownership cannot be ascertained or if the owner or 7
the owner's agent was guilty of the violation that resulted in the seizure of the 8
marijuana or usable marijuana, it may be sold or otherwise disposed of as provided 9
in sub. (2).
If tangible personal property other than marijuana or usable marijuana is 11
seized as provided under sub. (1), the department shall advertise the tangible 12
personal property for sale by publication of a class 2 notice under ch. 985. If no person 13
claiming a lien on, or ownership of, the property has notified the department of the 14
person's claim within 10 days after last insertion of the notice, the department shall 15
sell the property. If a sale is not practical the department may destroy the property. 16
If a person claiming a lien on, or ownership of, the property notifies the department 17
within the time prescribed in this subsection, the department may apply to the 18
circuit court in the county where the property was seized for an order directing 19
disposition of the property or the proceeds from the sale of the property. If the court 20
orders the property to be sold, all liens, if any, may be transferred from the property 21
to the sale proceeds. Neither the property seized nor the proceeds from the sale shall 22
be turned over to any claimant of lien or ownership unless the claimant first 23
establishes that the property was not used in connection with any violation under 24
this subchapter or that, if so used, it was done without the claimant's knowledge or 25
consent and without the claimant's knowledge of facts that should have given the
claimant reason to believe it would be put to such use. If no claim of lien or ownership 2
is established as provided under this subsection the property may be ordered 3
4139.978 Interest and penalties.
Any person who makes or signs any 5
false or fraudulent report under this subchapter or who attempts to evade the tax 6
imposed by s. 139.971, or who aids in or abets the evasion or attempted evasion of 7
that tax, may be fined not more than $10,000 or imprisoned for not more than 9 8
months or both.
Any permittee who fails to keep the records required by s. 139.974 (1) and 10
(2) shall be fined not less than $100 nor more than $500 or imprisoned not more than 11
6 months or both.
Any person who refuses to permit the examination or inspection authorized 13
under s. 139.975 (3) may be fined not more than $500 or imprisoned not more than 14
6 months or both. The department shall immediately suspend or revoke the permit 15
of any person who refuses to permit the examination or inspection authorized under 16
s. 139.975 (3).