Schwarzenegger Wants Marijuana Money


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California governor Arnold Schwarzenegger has his eyes on the marijuana of his citizens.

The State Board of Equalization, which is the state's main tax authority, has alerted California's 150 to 200 medical marijuana dispensaries that they are liable to pay taxes on their sales, the Sacramento Bee reported Monday.

'If you sell medical marijuana, your sales in California are generally subject to tax and you are required to hold a seller's permit,' the board said in notices sent out in February. 'If you do not obtain a seller's permit or fail to report and pay the taxes due, you will be subject to interest and penalty charges.'

The notice marks the first demand for marijuana taxes since California voters legalized medical marijuana in 1996 by passing Proposition 215 - in defiance of federal law.

The substance remains illegal under federal law even though 12 states have legalized use of the narcotic for medical treatment. The latest was New Mexico which passed its own medical marijuana bill last week.

Medicines are tax exempt in California, but tax authorities decided to start the marijuana levy because it is not dispensed by a pharmacist or approved by the Food and Drug Administration as a medication.

While some medical marijuana advocates support the tax for legitimizing their activity, others are concerned that the tax records could give federal authorities detailed records for possible prosecution follow-up.

Ryan Landers, a spokesman for Sacramento-area medical marijuana retailers and one of the original proponents of Proposition 215, supported the move.

'We've worked hard to make sure the (marijuana) clubs act like a good neighbour,' he said. 'We think if you pay your taxes, you're going to be looked upon a lot differently.'

Newshawk: CoZmO - 420 Magazine
Author: Deutsche Presse-Agentur
Copyright: 2007 Deutsche Presse-Agentur
Website: World News and Current Affairs on Monsters and Critics
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hey, it's a pain in the ass that it's now gonna be taxed, but at least he's not trying to abolish MMJ... I realize saying that is pretty sad, because it's like the sick are being oppressed still only not SO BADLY, but it's true...

Jim Finnel

Fallen Cannabis Warrior & Ex News Moderator
i feel good about taxing it. it adds a little bit of respectability to the mmj issue. it shows that the medical marijuana industry is legitimate as well as the patients. we need to do everything we can to improve our image.


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Yeah, but it's already so darn expensive at the dispensaries :yikes:


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Agreed, getting it taxed now is probably a blessing in disguise. Not only does it become a little more legit, it's also going to show people how much money marijuana could pull in, and as we all know, thats the only thing guaranteed to get politician's interest.


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Through true taxation and regulation of Medical Marijuana and any cannabis product, the pricing will eventually come in line with economics and actual value. This is a prototype of what is ultimately to come,as many other states will see the economic value of the success that California has brought to a business approach of the Medical Marijuana sales and sees the opportunity to also profit from the sales and growing of Marijuana. it is a wise move on behalf of the Gov, and for the people of California. It should be hailed as the largest stepping stone overcome since prohibition, and the initial forward momentum to motivate the rest of the United State to have in place a trade agreement of taxation and regulation of all marijuana either being grown and sold inside the United States, Canada or Mexico.
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