Pubdate: Fri, 31 Jul 2009
Source: Marin Independent Journal (CA)
Copyright: 2009 Marin Independent Journal
Contact:  http://www.marinij.com/
Details: http://www.mapinc.org/media/673
Author: Chris Stein
Bookmark: http://mapinc.org/topic/dispensaries
Bookmark: http://www.mapinc.org/find?115 (Cannabis - California)
Bookmark: http://www.mapinc.org/mmj.htm (Cannabis - Medicinal)

IN MARIN, FEW AGREE ON MEDICAL MARIJUANA TAXATION

With counties bracing for more state budget cuts, some are 
questioning whether medical marijuana, which is already generating 
significant sales tax revenue in one Marin town, should be the 
subject of a special tax.

While some contend that taxation of Marin's four dispensaries could 
result in increased acceptance of a controversial industry, medical 
marijuana advocates nonetheless have reservations about how 
additional fees would affect patients.

"I'm not at all opposed to taxation of medical marijuana," said 
Elizabeth, manager for the Apela Collective in Novato, who asked that 
her last name not be published. "My issue is taxation of people in dire need."

California's pot crop is worth an estimated $14 billion a year. A 
bill introduced Pot shots Have you ever purchased medical marijuana? 
Yes No this year by Assemblyman Tom Ammiano, D-San Francisco, would 
have legalized pot and imposed a $50 per ounce tax, which could 
generate $1.3 billion in revenue.

Ammiano has shelved the bill until next year to make revisions, but 
the debate over taxing medical marijuana continues.

Oakland voters on July 21 overwhelmingly approved a proposal that 
would impose a special 1.8 percent tax on the city's medical pot 
clubs, which have been given a new lease on life since Attorney 
General Eric Holder announced in February that the Drug Enforcement 
Administration would no longer be conducting raids on pot 
collectives. Oakland estimates the tax could raise $300,000 a year.

As early as 2010, a statewide proposal to legalize pot cultivation 
for personal use and posession of up to an ounce could be put before 
voters, under an initiative filed with the California attorney 
general last week by medical cannabis dispensary owner Richard Lee 
and a group of advocates.

Fairfax Town Manager Michael Rock, who has a 13-year-old medical 
marijuana collective within his town limits, said the state is 
already cashing in on sales tax from dispensaries following 
guidelines issued by Attorney General Jerry Brown and the state's 
Board of Equalization last year.

Once tax receipts for the past year are tallied, Fairfax Councilman 
Lew Tremaine said he anticipates that the Marin Alliance for Medical 
Marijuana, the county's longest operating dispensary, will be among 
the town's top five sales-tax generators.

The idea of an additional tax for medical cannabis received mixed 
reviews from local dispensary operators.

Scot Candel, attorney for Marin Holistic Solutions, a Corte 
Madera-based dispensary, said taxation of medical marijuana would 
essentially be a "sin tax," with consequences that would extend to 
the patients.

"All it would mean is that patients pay that much more for medical 
marijuana," Candel said. "I don't think the government should be 
steering patients toward one medicine or another."

Other medical cannabis advocates see the tax as a way to legitimize a 
controversial source of medicine.

John, a patient at Apela who did not want his last name used, said he 
supports taxation because it would help both the dispensaries and the 
community. "How do clubs expect police to guard the dispensaries if 
they're not paying taxes?" he said.

Local officials have questions about how to administer such a tax and 
what effect it would have on their communities.

"I think it would take a murky situation and make it muddier," 
Supervisor Steve Kinsey said. "I have no problem with the sale of 
medical marijuana out of clubs, and I think more supply outlets could 
be positive, but taxing doesn't seem to be the way to get to that."

Novato Councilwoman Jeanne MacLeamy said she would not support 
proposals to tax medical pot because the drug causes more problems 
than it solves. "I really see marijuana as a gateway drug to more 
use," MacLeamy said.

Fairfax Councilman Larry Bragman said he supports his town's 
dispensary but is not sure if levying additional taxes would be a wise move.

"Pharmaceutical prescriptions are not taxed, and patients are already 
paying sales tax," Bragman said. "I'm not so sure it's a great policy 
to levy additional tax when they're already paying a hefty sales tax."

But, according to Bragman, the financial benefits to the town of 
having a tax-paying dispensary are significant.

"(The dispensary) has definitely been making significant 
contributions to the coffers," Bragman said.
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MAP posted-by: Jay Bergstrom