tagged w/ Marijuanafornia
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OAKLAND, Calif. — Oakland residents overwhelmingly voted Tuesday to approve a first-of-its kind tax on medical marijuana sold at the city's four cannabis dispensaries.
Preliminary election results showed the measure passing with 80 percent of the vote, according to the Alameda County Registrar of Voters.
The dispensary tax was one of four measures in a vote-by-mail special election aimed at raising money for the cash-strapped city. All four measures won, but Measure F had the highest level of support.
Scheduled to take effect on New Year's Day, the measure created a special business tax rate for the pot clubs, which now pay the same $1.20 for every $1,000 in gross sales applied to all retail businesses. The new rate will be $18.
Oakland's auditor estimates that based on annual sales of $17.5 million for the four clubs, it will generate an estimated $294,000 for city coffers in its first year.
Pot club owners, who openly sell pot over the counter under the 1996 state ballot measure that legalized medical marijuana use in California, proposed Measure F as a way to further legitimize their establishments.
"It's good business and good for the community," said Richard Lee, who owns the Coffee Shop SR-71 dispensary and Oaksterdam University, a trade school for budding dispensary workers.OAKLAND, Calif. — Oakland residents overwhelmingly voted Tuesday to approve a... more
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Oakland residents overwhelmingly voted Tuesday to approve a first-of-its kind tax on medical marijuana sold at the city's four cannabis dispensaries.
Preliminary election results showed the measure passing with 80 percent of the vote, according to the Alameda County Registrar of Voters.
The dispensary tax was one of four measures in a vote-by-mail special election aimed at raising money for the cash-strapped city. All four measures won, but Measure F had the highest level of support.
Scheduled to take effect on New Year's Day, the measure created a special business tax rate for the pot clubs, which now pay the same $1.20 for every $1,000 in gross sales applied to all retail businesses. The new rate will be $18.
Oakland's auditor estimates that based on annual sales of $17.5 million for the four clubs, it will generate an estimated $294,000 for city coffers in its first year.
Pot club owners, who openly sell pot over the counter under the 1996 state ballot measure that legalized medical marijuana use in California, proposed Measure F as a way to further legitimize their establishments.
"It's good business and good for the community," said Richard Lee, who owns the Coffee Shop SR-71 dispensary and Oaksterdam University, a trade school for budding dispensary workers.
The measure had no formal opposition; in November 2004, a ballot initiative that required Oakland police to make arresting adults using marijuana for personal use their lowest priority passed with 63 percent of the vote.
Support for Measure F was expected to be just as strong. As a result and given the mail-in nature of the election, there was little campaign activity, according to Lee.
"We put out signs, but outside of that it's been pretty low-key," said Lee, who hosted a victory party at Oaksterdam University's Student Union building in downtown Oakland.
Although California's 800 or so pot clubs also are expected to pay state sales tax, Oakland is the first city in the country to create a special tax on marijuana sales.
Advocates of legalizing pot for recreational use hope to use Oakland's experience with Measure F to persuade California voters next year to approve a measure that would legalize and regulate marijuana like alcohol.
City Council President Jane Brunner said last week the city is counting on all the measures passing because every dollar is precious in Oakland, where the council was forced to slash $83 million in funding so that its $414 million budget for fiscal 2010 is balanced.
Brunner said she was most interested in the fate of Measure D, which modifies a similar measure, called Kids First, which voters approved last year.
It would require the city to set aside 3 percent of its annual unrestricted general purpose fund revenues for grants to children and youth services.
Brunner said it is expected to raise about $3 million this year and up to $17 million in future years.
The measure appears to have passed with 71.5 percent of the vote, according to preliminary election results.
Measure C, the only measure that needs two-thirds approval, would increase Oakland's hotel tax by 3 percentage points, to 14 percent.
It's expected to generate an additional $2.8 million this year for a total of $12.9 million. Preliminary results indicate 76.6 percent of voters approved the measure.
Measure H would ensure that property transfer taxes be applied to properties that change hands, including those that are a results of mergers, acquisitions and other corporate ownership changes. The measure appears to have passed with 74.6 percent of the vote.
City officials estimate that it would generate $4.4 million in additional tax revenue.
Oakland residents have been turning in their ballots by mail or in person for the last several weeks.
According to the Alameda County Registrar of Voters, the preliminary results do not include most ballots turned in Tuesday and official results are expected later this week.Oakland residents overwhelmingly voted Tuesday to approve a first-of-its kind tax on... more
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The Marijuana Tax was approved!
http://current.com/items/90495819_pot-tax-approved.htm
Oakland's marijuana clubs rang up nearly $20 million in sales last year and pot club operators are lining up behind the idea of a marijuana tax.
"This measure imposes a 1.8 percent gross receipts tax on the four licensed medical cannabis dispensaries in Oakland," dispensary operator Steve DeAngelo said.
If it passes, Oakland would be the first city in the country to directly tax marijuana sales -- and there is not an ounce of controversy surrounding it.
Club operators like Richard Lee actually lobbied to put the tax on the ballot.
"We do see it as one more step toward legitimizing the cannabis industry," Lee said.
Dispensaries now pay a $1.20 in city taxes for very $1,000 in pot sold. The new law would raise that tax to $18.
But marijuana sales appear to be recession proof and club operators say they can afford the new tax.
"The market for cannabis is so strong that we'll be able to absorb the cost," Lee said.
The marijuana tax could generate at least $400,000 annually. The Oakland City Council is banking on that tax and three other measures passing this July. If they do not, Oakland faces millions more in local cuts.
Lawyer James Anthony wrote the tax law on behalf of the dispensaries.
"It's really about local government and local needs and providing access to medicine for patients in a way that works for the community and for the city," Anthony said.
For Councilwoman Rebecca Kaplan, it is about saving jobs in dire economic times.
"That means five or six police officers depending on how senior they are and how much they're paid," Kaplan said.
The clubs that could be paying more, say there is no plan to pass the added expense on to the customers.
"We want to demonstrate to our neighbors that we are good citizens; citizens pay taxes, criminals don't," DeAngelo said.The Marijuana Tax was approved!... more
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The Marijuana Policy Project (MPP) kicked off a TV ad campaign aimed at gaining support for a California marijuana legalization bill in the legislature on Wednesday, but ran into problems with several TV stations around the state, which either rejected the ad outright or just ignored MPP efforts to place it. Still, the spots are up and running on other Golden State stations.
Playing on California's budget crisis -- the state is $26 billion in the hole and currently issuing IOUs to vendors and laying off state workers -- the 30-second spots feature middle-aged suburban Sacramento housewife Nadene Herndon, who tells the camera:
"Sacramento says huge cuts to schools, health care, and police are inevitable due to the state's budget crisis. Even the state's parks could be closed. But the governor and the legislature are ignoring millions of Californians who want to pay taxes. We're marijuana consumers. Instead of being treated like criminals for using a substance safer than alcohol, we want to pay our fair share. Taxes from California's marijuana industry could pay the salaries of 20,000 teachers. Isn't it time?"
As Herndon finishes speaking, the words "Tax and regulate marijuana" appear on the screen, as well as a link to Controlmarijuana.org. Clicking on that link actually takes you to MPP's "MPP of California" web page.
**************************CONTINUES*******************The Marijuana Policy Project (MPP) kicked off a TV ad campaign aimed at gaining... more
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