Jim Finnel
Fallen Cannabis Warrior & Ex News Moderator
A state senator has introduced a bill that would add a 10 percent fee on “a grower’s gross sales” of medical marijuana in the state.
Sen. Dave Lewis, R-Helena, has introduced a bill “regulating medical marijuana provider supply system,” that, among other things, establishes the 10 percent fee.
The issue came up during a Senate and House Taxation Committee meeting on Tuesday morning when a lawmaker asked about the constitutionality of placing a state sales tax on a product that is illegal at the federal level.
Montana Department of Revenue Chief Legal Counsel C. A. Daw said he believes such a tax would be legal.
“My view is yes,” Daw told lawmakers. “It’s a really strange position to be in.”
Daw pointed to Colorado which has placed a sales tax on medical marijuana in that state.
Republican House Member Mike Miller, of Helmville, asked about the constitutionality of the tax and said after the hearing that it could work similar to taxes on cigarettes or alcohol.
“I’d be in favor of it,” Miller said.
Montana Medical Growers’ Association Executive Director Jim Gingery called the idea “fundamentally wrong” and said it would be the first tax on a medicine in the state.
“I’m very concerned for the patients in the state of Montana,” Gingery said. “I think it’s totally inappropriate to tax medicine period.”
Gingery said a sales tax on medical marijuana could have the unintended consequence or raising prices and opening the door to the black market.
Lewis said he would characterize it as a “production fee” instead of a sales tax.
“I’m taxing the growers. It’s a cost of business for the growers,” he said.
Lewis’ bill is one of about 25 bills that are in the process of being introduced that deal with medical marijuana, according to Gingery.
On Friday the Growers’ Association will deliver a Comprehensive Guide to Medical Cannabis in Montana that will look at the issues in a number of proposed bills, Gingery said.
“I would hope that at the end of the day the patients are not taxed,” he said.
Gingery said there are things in the Lewis bill and other proposed legislation that he does support. He said the organization supports tracking medicine and establishing appropriate business practices such as inventory control.
Lewis said he is not certain how much the tax, if enacted, might bring in. He said around 30,000 medical marijuana cards have been issued, but he is not sure of the average use.
The chances of passage are also unclear, according to Lewis. He said the biggest opposition is likely to come from those who would prefer to eliminate medical marijuana altogether. Lewis said he would like to control it rather than repeal it.
“I think it needs to be done, and I’m going to try my best to get it through,” Lewis said of his bill.
NewsHawk: Jim Behr: 420 MAGAZINE
Source: montana.watchdog.org
Author: PHIL DRAKE
Copyright: 2011 ABC
Contact: Montana Watchdog
Website: Bill puts grower’s tax on medical marijuana; group to issue report
Sen. Dave Lewis, R-Helena, has introduced a bill “regulating medical marijuana provider supply system,” that, among other things, establishes the 10 percent fee.
The issue came up during a Senate and House Taxation Committee meeting on Tuesday morning when a lawmaker asked about the constitutionality of placing a state sales tax on a product that is illegal at the federal level.
Montana Department of Revenue Chief Legal Counsel C. A. Daw said he believes such a tax would be legal.
“My view is yes,” Daw told lawmakers. “It’s a really strange position to be in.”
Daw pointed to Colorado which has placed a sales tax on medical marijuana in that state.
Republican House Member Mike Miller, of Helmville, asked about the constitutionality of the tax and said after the hearing that it could work similar to taxes on cigarettes or alcohol.
“I’d be in favor of it,” Miller said.
Montana Medical Growers’ Association Executive Director Jim Gingery called the idea “fundamentally wrong” and said it would be the first tax on a medicine in the state.
“I’m very concerned for the patients in the state of Montana,” Gingery said. “I think it’s totally inappropriate to tax medicine period.”
Gingery said a sales tax on medical marijuana could have the unintended consequence or raising prices and opening the door to the black market.
Lewis said he would characterize it as a “production fee” instead of a sales tax.
“I’m taxing the growers. It’s a cost of business for the growers,” he said.
Lewis’ bill is one of about 25 bills that are in the process of being introduced that deal with medical marijuana, according to Gingery.
On Friday the Growers’ Association will deliver a Comprehensive Guide to Medical Cannabis in Montana that will look at the issues in a number of proposed bills, Gingery said.
“I would hope that at the end of the day the patients are not taxed,” he said.
Gingery said there are things in the Lewis bill and other proposed legislation that he does support. He said the organization supports tracking medicine and establishing appropriate business practices such as inventory control.
Lewis said he is not certain how much the tax, if enacted, might bring in. He said around 30,000 medical marijuana cards have been issued, but he is not sure of the average use.
The chances of passage are also unclear, according to Lewis. He said the biggest opposition is likely to come from those who would prefer to eliminate medical marijuana altogether. Lewis said he would like to control it rather than repeal it.
“I think it needs to be done, and I’m going to try my best to get it through,” Lewis said of his bill.
NewsHawk: Jim Behr: 420 MAGAZINE
Source: montana.watchdog.org
Author: PHIL DRAKE
Copyright: 2011 ABC
Contact: Montana Watchdog
Website: Bill puts grower’s tax on medical marijuana; group to issue report
