Cities Eye Taxes On Marijuana

If California voters want to legalize it, Larry Robinson wants to tax it.

The Sebastopol councilman is asking his fellow city leaders to consider ways to tax marijuana sales if California voters approve a measure on the November ballot that would legalize pot.

The council is scheduled to discuss the idea at its meeting Tuesday night, joining a growing number of cities intrigued by the bottom-line benefits of taxing marijuana.

Robinson said he's not asking the council to take a stance on legalizing recreational use of cannabis. He just wants the city to position itself to move quickly if voters approve the November ballot measure, which would allow adults to possess and cultivate limited amounts of marijuana.

"It's just recognizing that there's a relatively good chance that this initiative will pass," Robinson said. "I just want the city of Sebastopol to be in the best possible position to both regulate and tax it."

Robinson is proposing to place a measure before Sebastopol voters in November that would authorize the city to tax marijuana sales. The council must vote on the concept by August to make the ballot.

Robinson said he envisions a 1 percent to 2 percent local tax on all marijuana sales, both on existing sales of medical marijuana and potential future sales of pot for recreational use.

Rich Maloney, who purchases medical marijuana at the only cannabis dispensary in Sebastopol, Peace in Medicine Healing Center, said he would be willing to pay more if pot was taxed by local government. The state already taxes sales of medical marijuana.

He credits cannabis for getting him off a host of narcotics that he began taking after breaking his leg in a motorcycle accident a year and a half ago.

Robert Jacob, executive director of Peace in Medicine, which soon plans to open another clinic in Sebastopol, said he also welcomes paying more taxes.

The more the nonprofit business contributes to the community, the more people see it as a local asset, he said.

"Taxation provides legitimacy," he said.

Jacob, however, would only support the tax if Sonoma County adopts a similar policy. Otherwise Peace in Medicine would lose its ability to draw clients, he said.

Already, the clinic has to compete with dispensaries that have arisen since a Superior Court judge struck down Sonoma County's marijuana dispensary ordinance last December. The ruling is under appeal.

Sonoma County Supervisor Mike Kerns said he doesn't see the county taking on marijuana taxes in the near future. It's premature to act before state voters decide on the matter – and before the appeals case on the county's dispensary ordinance is settled, he said.

As a former cop, Kerns also has concerns about legalizing a "gateway drug" that could lead to more problems.

Still other local leaders are more open to the idea. Santa Rosa City Councilman Gary Wysocky said he would be interested in looking at marijuana businesses as part of an overhaul of business license fees or in addition to other "sin taxes."

"If it was legal, it should be taxed just like alcohol and tobacco," he said.

Other cities have already cashed in from marijuana sales. Last year, Oakland became first U.S. city to impose a local tax on medical marijuana dispensaries.

Berkeley leaders have recently discussed implementing taxes on recreational and medical use of the drug.

Discussions in Sebastopol are very much in the early stage. Councilman Guy Wilson said he is open to all intelligent ideas to raise revenue, but is not convinced that allowing recreational marijuana sales would be worth the burdens to the system.

"I am not convinced we have to do something right now," he said.


NewsHawk: Ganjarden: 420 MAGAZINE
Source: PressDemocrat.com
Author: SAM SCOTT
Contact: PressDemocrat.com
Copyright: 2010 PressDemocrat.com
Website: Cities eye taxes on marijuana
 
I thought under CA law prescription drugs and certain medical supplies are not taxable?

I write off my gardens expenses as medical costs... :p

If its legal for everyone to grow their own for recreational use wont the tax revenue be really small anyway?

I would also guess many (all?) non-medical big growers would still be underground and not pay taxes.


Im surprised Sebastopol is talking taxes before making growing non-organic weed illegal... :grinjoint:

(They are a nuclear free city since '86, that recently voided a signed city wide free wifi contract from a local ISP due to FUD over radiation concerns)
 
As a former cop, Kerns also has concerns about legalizing a "gateway drug" that could lead to more problems.

Still other local leaders are more open to the idea. Santa Rosa City Councilman Gary Wysocky said he would be interested in looking at marijuana businesses as part of an overhaul of business license fees or in addition to other "sin taxes."

Here are two people that are not educated on the "facts". It is not a gateway drug or a sin to use it.
 
OMG - After watching so many cities floundering around for years with their feeble attempts at regulating the medical cannabis industry, a city is actually being proactive in preparing new rules and regulations so there is a smooth transition into supplying the masses with marijuana and getting their piece of the pie so they can keep their city afloat in this strange economy?

Warms my heart.

Now to light the fire under the rest of the communities to "prepare for legalization" so we don't have to listen to them whine about how retail smoke-shops have sprouted all over their city because of some loophole in the terminology of their present laws which doesn't exclude, regulate or tax them.

Better wake up!
 
If its legal for everyone to grow their own for recreational use wont the tax revenue be really small anyway?

The demand will not diminish. It will grow. 90% of the people will not grow their own. Any of us who grow know that it is more than just throwing a couple seeds in the ground and keeping them watered if you want something good. There is also the demand while waiting for months while their first attempts to mature (hoping the neighborhood kids don't spot it and take advantage).

Then the winter months when indoors is the only way, even a higher percentage will opt to purchase from retailers rather than take the time to make an indoor grow worthwhile.

Retailers will rake it in - Cities will rake in taxes. The counties and state will get theirs too.

Price will probly fix itself after a couple years. There will be regular and super grades - just like anything else we consume, and competition will even things out - eventually.

Cannabis - The Legendary Money Tree
 
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