Pubdate: Sat, 28 May 2011 Source: Summit Daily News (CO) Copyright: 2011 Summit Daily News Contact: http://apps.summitdaily.com/forms/letter/index.php Website: http://www.summitdaily.com/home.php Details: http://www.mapinc.org/media/587 Author: Caddie Nath Bookmark: http://mapinc.org/topic/Dispensaries BRECKNRIDGE TO LIMIT POT DISPENSARIES TO THREE Town Plans to See Seven Current Dispensaries Reduced Through Attrition BRECKENRIDGE -- The Town of Breckenridge will move forward in the next few weeks with a measure to cap the number of medical marijuana dispensary permits that will be allowed in the town limits. The ordinance, which has not yet been presented to council, is expected to begin to resolve for the town an issue state and local governments have grappled with for the last few years. Breckenridge currently has seven dispensaries doing business in town, but will look to reduce that number to no more than three in the coming years through attrition, allowing market forces to narrow the number of operations and not approving any new licenses. Existing dispensaries will not be allowed to change locations or ownership under the new ordinance, town officials said. "Obviously we're not going to run them out of business," Breckenridge spokeswoman Kim DiLallo said of the cap policy. "We'll get to a point where there will be natural attrition." Town council gave staffers direction to begin drafting the dispensary cap ordinance at Tuesday's town council retreat. Tricky issue Breckenridge has been considering how to regulate medical marijuana dispensaries in town since a moratorium went into effect last year. Both local and state governments have grappled with the issue since voters approved Amendment 20 in 2000, allowing the use and sale of marijuana for medical purposes. The town council's move to cap dispensaries comes as marijuana advocates plan to push eight separate ballot initiatives aimed at the legalization of the drug. The initiatives would ask voters to allow the possession and use of less than one ounce of marijuana for people ages 21 and up, and to give the state leeway to begin regulating the retail sale of marijuana. It was those initiatives, in part, that gave Breck officials pause in moving forward with a proposed marijuana tax, which would be similar to a tobacco tax. Half of the proposed initiatives will include a taxation component, town staffers said. Breckenridge officials also considered the fact that medical marijuana is supposed to be used as medicine, which is tax exempt. Also at play is the fact that marijuana use for any purpose is still illegal under federal law, and applying a tax appears to legitimize the practice. Breckenridge's seven licensed dispensaries netted about $1 million in taxable sales in 2010 and already grossed more than $200,000 in the first quarter of 2011. A 5 percent marijuana tax would bring in almost $58,000 annually, based on estimates from the town, in addition to the approximately $25,000 in sales taxes Breckenridge collected on marijuana in 2010. Council members said an additional marijuana tax would help offset the costs that regulation questions and enforcement have incurred. "My concern is that medical marijuana has cost this town our time, staff time," Mayor John Warner said. "I'd like to see us doing it sooner than later." The Denver Post contributed to the reporting of this story. - --- MAP posted-by: Jay Bergstrom