HTTP/1.0 200 OK Content-Type: text/html Medical Marijuana Sales Tax May End
Pubdate: Sun, 20 Jan 2008
Source: Ukiah Daily Journal, The (CA)
Copyright: 2008 The Ukiah Daily Journal
Contact: http://www.ukiahdailyjournal.com/feedback
Website: http://www.ukiahdailyjournal.com/
Details: http://www.mapinc.org/media/581
Author: Rob Burgess, The Daily Journal
Bookmark: http://www.mapinc.org/mmj.htm (Marijuana - Medicinal)
Bookmark: http://www.mapinc.org/topic/dispensaries

MEDICAL MARIJUANA SALES TAX MAY END

Medical marijuana dispensaries in California, including the two that 
currently operate in Mendocino County, may soon be exempt from state 
sales tax, said a representative from the California State Board of 
Equalization.

The regulations will soon reflect the change that when marijuana is 
prescribed by a physician it is determined to be a medicine, said 
Sarah, the representative, who refused to reveal her surname.

In order to be exempt from sales tax, the business must conform to 
Regulation 1591, which states in part that the item must qualify as a 
medicine, said the representative.

"Regulation 1591 defines a medicine, in part, as any substance or 
preparation intended for use by external or internal application to 
the human body in the diagnosis, cure, mitigation, treatment, or 
prevention of disease and which is commonly recognized as a substance 
or preparation intended for that use," stated a special notice 
released by the board titled "Information on Sales Tax and 
Registration for Medical Marijuana Sellers."

The change will be a reversal from the board's previous position.

In February 2007, the board sent out a notice to dispensaries, urging 
them to obtain a seller's permit like any other retailer.

There are currently two dispensaries operating in the county: Herban 
Legend in Fort Bragg and Reflections of Avalon in Ukiah, which opened 
last month on South State Street just outside of city limits.

A third dispensary, Mendo Remedies in Laytonville, was open until 
last month, when it closed its doors for good.

Paula Deeter is the owner of Herban Legend in Fort Bragg. Deeter said 
she has always adhered to federal tax laws.

"I wish they would make up their minds," she said. "We were unclear 
at first if it was a taxable item. We've always paid federal income tax."

On April 20, 1996, the U.S. Food and Drug Administration drafted a 
news release that declared that smoked marijuana had no medicinal value.

"A growing number of states have passed voter referenda (or 
legislative actions) making smoked marijuana available for a variety 
of medical conditions upon a doctor's recommendation," the memo 
stated. "These measures are inconsistent with efforts to ensure that 
medications undergo the rigorous scientific scrutiny of the FDA 
approval process." 
- ---
MAP posted-by: Richard Lake