But caution is in order. There are some dominoes that need to fall first.
The topic came up again last week, as Denver City Council members Chris Nevitt and Charlie Brown publicly expressed support for imposing a city sales tax on medical marijuana sales. "We've got to tax this damn thing at the city rate, which is 3.62 percent," Brown told us. "We're talking millions of dollars here."
And that may be. But some questions about legality of taxation and the future of medical marijuana have to be answered first. And we think that overall, cities such as Denver ought not look to the emerging industry as a windfall that could close budget gaps.
First, the legality of taxing the commodity is up in the air.
Colorado Attorney General John Suthers is researching the issue, and his decision will turn on whether the substance is deemed a prescription or something more like an herbal remedy.
The latter seems more likely, since marijuana isn't a drug that has been approved by the U.S. Food and Drug Administration. And herbal remedies are already taxed.
Second, we don't think governments ought to take advantage of the medical marijuana laws in the way that so-called "ganjapreneurs" have been doing.
Meaning, governments would be just as wrong to reap great wads of cash from back-door legalization efforts as are the mass dispensaries, some of which are just barely pretending to be serving the most infirm among us.
Amendment 20, which passed in 2000, did not approve the legalization of marijuana in Colorado, despite the wishful thinking of some.
Furthermore, legislators are poised to address the medical marijuana issue in the upcoming session, which begins in January, and their decisions could seriously affect how medical marijuana is delivered in Colorado. (See Alicia Caldwell's article from today's Perspective section.)
If their decisions shrink the number and reach of distributors, then a basic sales tax should be enough.
But if lawmakers create a structure that encourages a broader distribution model — with attendant regulatory and service requirements — then other fees and taxes would be worth contemplating.
It would seem prudent, we think, to wait until the shape of medical marijuana is more clearly defined before settling on a taxing structure.
It's smart to get ahead of the game and contemplate the tax and revenue-generating alternatives. But we hope governments will exhibit some foresight and restraint before they make decisions they might have to revise once the medical marijuana landscape is clearly defined.
http://www.denverpost.com/opinion/ci_13725482
http://blog.buzzflash.com/files/hemp-washington.jpg
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- copperdragon
- added this
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The new way to make taxes fun
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Never. Just a plot to further victimize the "bad ones" like they call us.
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- JollyGoodFelon
- 17 days ago
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yes
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- caverat101
- 17 days ago
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You would be surprised to see how many governments already have a tax on marijuana sales - used by law enforcement to add more charges on possession even though it is illegal - last time I checked we have on in Texas - you ate suppose to buy stamps from the state
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I know this article pertains mainly to medical marijuana but think about how much additional revenue would be brought in if marijuana were legalized and taxed at the standard tobacco rate, not to mention the money saved in police man hours spent on enforcement of prohibition. Its a fiscal goldmine!
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Just for the record, this is BS. That politicians want to turn medical marijuana into a cash cow comes as no shock. But they want to do this on the backs of the folks authorized to receive this? BS
When they finally get around to saying it's OK to do what I'm already doing, i.e. to smoke pot rather than drinking alcohol, then OK. That I expect. But how it is now, save possibly CA. (you go folks), is that damn few people can obtain the OK. These are folks that are already struggling - many are terminal. You want THESE people to pay for it? BS
Leave us get just a little bit of reason in here anyway. If they want to tax me, rather than trying to lock me up, then I can live with that. Medical marijuana recipients don't deserve that. They deserve a free ride and an apology for all the suffering this prohibition has caused them. You help people that are sick - you don't hurt them.
Is compassion dead?
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ASA we start taxing other Rx. We can start taxing MMJ
Non medical use is another matter
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- ras_menelik
- 17 days ago
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Reclassifying and taxing cannabis is not a bad idea. People who consume cannabis are already paying high prices for it, basically due to the illegality of cultivation. If cannabis were reclassified and no longer criminal, there would be no need to charge such exuberant prices. I don't think Americans would reject a tax, which would allow them to come out of the closet and eliminate the fear of jail for smoking in the privacy of their own homes. I personally would rather give Uncle Same a piece of the profit, rather than the so-called 'drug dealers'.
I think we need to discuss cannabis, without the 'madness' spin, which has been used during the 'war on cannabis'. Ordinary Americans have been denied the actuals history of cannabis hemp. It was removed from educational material in America and replaced with disinformation and many times out and out lies. That has to change.
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But think of it like this. The price, up to $70 an 1/8 oz, is pretty much because of the way it's grown, bootleg on National Forest land, maintained by a couple of guys that get one fat paycheck a year when the crop comes in, if it doesn't get busted, and the shit basically grows itself.
If we put it in the hands of the private sector, you are right, probably better than the government, with the right technology, maybe some Genetic Engineering for higher yields and stronger effects, they could grow whole fields of it, the price would go down, and we wouldn't be supporting the gangs, the cartels, and everybody that has a finger in the pie right now.
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maybe they could save money by not prosecuting the pot heads and make more money by selling it
BAM money crisis solved -
OK - Texas Mary Jane tax: http://www.window.state.tx.us/taxinfo/contr_sub/index.html
