tagged w/ marijuana debate
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Taxing medical marijuana sales is an idea worth considering, not because it is a potential cash cow for fiscally constrained governments, but because it could raise revenue needed to cover the services the flourishing businesses will require.
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.jpgTaxing medical marijuana sales is an idea worth considering, not because it is a... more
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Massachusetts Joint Revenue Committee Hearing on Marijuana Legalization, Regulation, Taxation, and the right to grow your own for personal, non commercial use with Keith Stroup (NORML), Bill Downing, Steven Epstein, State Reps and Senators.
Talking seriously about marijuana legalization. Legalize and tax it for commercial use. Allow individuals to grow for personal use tax free. More videos to be posted. Also check out
http://www.examiner.com/examiner/x-26... and Subscribe! The more subscribers we get on Examiner.com the more views or this cause.Massachusetts Joint Revenue Committee Hearing on Marijuana Legalization, Regulation,... more
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A regulated, taxed marijuana trade could help bolster the state’s economy, advocates for legal marijuana said today at a Revenue Committee hearing.
"Whether you like it or you hate it ... it is undeniable in 2009 that marijuana has become inextricably embedded in our culture," said Richard Evans, a Northampton attorney. "It is ubiquitous and it is ineradicable."
Evans urged the committee to "put on your green eye shades and give close scrutiny to marijuana prohibition." He asserted that the revenue the state could reap from a legalized marijuana industry could be comparable to the effect of introducing casinos, although he offered no supporting data.
During the hearing, lawmakers heard from a long line of lawyers, professors and young people who argued in favor of legalization, pointing to Massachusetts’s history as a leader on social issues and describing its potential to ease symptoms of Crohn’s disease or migraine headaches. Their testimony dominated the hearing, which also included on the docket bills to raise the alcohol excise tax and to reimburse cities and towns for tax exempt properties owned by non-profits.
Backers of legalization spoke on behalf of a bill (H 2929), filed by Rep. Ellen Story (D-Amherst) at Evans’s request. The proposal would prevent "possession or cultivation of cannabis," "gratuitous distribution of cannabis to an adult," and "possession or distribution of cannabis under a valid license" from being considered violations of the law.
A preamble to the proposal states that the goal of the bill is "the reduction of cannabis abuse, the elimination of marijuana-related crime and the raising of public revenue." The bill would establish a council to set up a grading system for marijuana quality and would ban additives, which supporters argued would ensure the health and safety of users.
The bill would impose various rates of excise taxes on marijuana retail sales, depending on the concentration of THC, the active ingredient in marijuana. Marijuana with the highest concentration of THC would be taxed at $250 an ounce, while lower concentrations would range from $150 to $200 in taxes. In addition, licenses to sell marijuana would cost $2,000 a year. Marijuana vending machine sales would be prohibited.
Lawmakers on the committee expressed skepticism but offered little in the way of opposition or support. Rep. Lew Evangelidis (R-Holden) wondered whether any other nations have a system of taxation and regulations of marijuana, and Rep. Jay Barrows (R-Mansfield) asked advocates whether they would be confident in the government’s ability to set up a regulatory system.
Committee co-chair Rep. Jay Kaufman (D-Lexington) said he was surprised by one aspect of the arguments.
"This is probably the only hearing this committee has ever had or will ever have with this number of people asking to be taxed," he said.
The discussion came nearly a year after Massachusetts voters overwhelmingly approved a referendum to decriminalize the possession of up to an ounce of marijuana, replacing the threat of arrest with a $100 fine.
But advocates for legalization say decriminalizing possession still leaves open the question of where users would obtain marijuana, which they say is now done on an unregulated, often dangerous black market. They also highlighted the potential medical uses of marijuana and noted that California and Rhode Island were exploring issues surrounding legalization.
Rep. William Breault, a member of the Main South Alliance for Public Safety, a Worcester-area organization that advocates for various public safety measures, said legalizing marijuana would be giving political validation to a dangerous drug that is often the cause of impaired driving accidents. He said that in California, where some dispensaries may legally sell medical marijuana, ancillary robberies, shootings and other crimes have resulted.
Breault said he is pursuing local efforts to raise fines for possessionA regulated, taxed marijuana trade could help bolster the state’s economy,... more
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