; table of contents. TITLE I—Taxation Sec. 101. Establishment of taxes relating to marijuana products. I Taxation 101. Establishment of taxes relating to marijuana products (a) In general Subtitle E of title I of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter: 56 Marijuana Products Subchapter A. Tax on Marijuana Products Subchapter B. Occupational Tax Subchapter C. Bond and Permits Subchapter D. Operations Subchapter E. Penalties A Tax on Marijuana Products Sec. 5901. Imposition of tax. Sec. 5902. Definitions. Sec. 5903. Liability and method of payment. Sec. 5904. Exemption from tax. Sec. 5905. Credit, refund, or drawback of tax. 5901. Imposition of tax (a) Imposition of tax There is hereby imposed on any marijuana product produced in or imported into the United States a tax equal to— (1) for any such product sold during the first 5 calendar years in which this chapter becomes effective, the applicable percentage of the price for which such product is sold, and (2) for any product sold during any calendar year after the period described in paragraph (1), the applicable equivalent rate. (b) Applicable percentage For purposes of subsection (a)(1), the applicable percentage shall be determined as follows: (1) For any marijuana product sold during the first 2 calendar years in which this chapter becomes effective, 10 percent. (2) For any marijuana product sold during the calendar year after the period described in paragraph (1), 15 percent. (3) For any marijuana product sold during the calendar year after the period described in paragraph (2), 20 percent. (4) For any marijuana product sold during the calendar year after the period described in paragraph (3), 25 percent. (c) Applicable equivalent rate (1) In general For purposes of subsection (a)(2), the applicable equivalent rate for each calendar year shall be equal to— (A) in the case of any marijuana product not described in subparagraph (B) which is sold during such year, the applicable rate per ounce of such product