Katelyn Baker
Well-Known Member
Wasilla - Voters have known they will decide whether commercial marijuana will be legal in the unincorporated Mat-Su Borough for months.
A borough assembly vote Tuesday means they'll decide whether or not hypothetically legal marijuana operations will collect and pay taxes, too.
Assembly members voted 5-1 to put the measure on the Oct. 4 ballot. Assemblyman George McKee cast the lone dissenting vote, though assemblyman Dan Mayfield said he would file for reconsideration of that measure, meaning a second vote on it could be taken at the Assembly's Aug. 2 meeting.
McKee said it would be improper to decide the issue without knowing the results of the October vote, and unsuccessfully sought to postpone the tax measure until the Oct. 18 assembly meeting.
"I'm 79 years, eight months old," he said. "We wasted 15 minutes of my precious time talking about something that may not happen. Okay? It's ridiculous. That's why I think we ought to postpone it until something happens."
A yes vote on the Oct. 4 ballot would place a 5 percent sales tax on marijuana in the borough organizations. An amendment introduced by assemblyman Randall Kowalke means the cities of Houston, Palmer and Wasilla will be exempt for the portion of sales tax they charge, up to the 5 percent total.
The unamended motion drew opposition from the city of Houston, where officials anticipate marijuana could easily become among its top sources of tax revenue. The city council passed a resolution June 16 asking for incorporated areas to be exempted.
Deputy Mayor Lance Wilson said stacking taxes could make Houston non-competitive with other jurisdictions without similar effects.
"I'm very concerned that the way you have the legislation written currently, you'll be placing a 5 percent borough tax on top of the city of Houston's 2 percent general sales tax," he said. "That won't do any of us any good, even if Houston becomes the only place in the borough where it's legal to sell. You might be pricing us out of the market."
For example, Anchorage and Fairbanks had each set marijuana-focused taxes at 5 percent. The sales tax with the borough tax on top would effectively make Houston's marijuana rate 7 percent.
Kowalke's amendment drew some opposition from Mayfield, who said it was unrealistic to think people would drive to Anchorage or Fairbanks specifically to buy marijuana.
"The reality is that marijuana will likely become a commodity of convenience, just like cigarettes and liquor," he said. "If you're going to be there, then you're gonna buy the product. Then it becomes more inevitable that Houston is the only area in the borough that allows commercialization of marijuana."
Assemblyman Steve Colligan said he supported the amendment. In order for voters to make an informed decision for the October poll, they should know the possible tax plans that will go into effect as a result.
"Taxation is one of the major tenants of this discussion in the public, and to not have that out there, or a stake in the ground, or the public understand what that is or part of the discussion just allows for too much manipulation," he said. "It's going to add to more confusion about the actual discussion."
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Voters Will Decide Sales Tax For Marijuana
Author: Brian O'Connor
Contact: 907-352-2250
Photo Credit: Frontiersman
Website: Frontiersman
A borough assembly vote Tuesday means they'll decide whether or not hypothetically legal marijuana operations will collect and pay taxes, too.
Assembly members voted 5-1 to put the measure on the Oct. 4 ballot. Assemblyman George McKee cast the lone dissenting vote, though assemblyman Dan Mayfield said he would file for reconsideration of that measure, meaning a second vote on it could be taken at the Assembly's Aug. 2 meeting.
McKee said it would be improper to decide the issue without knowing the results of the October vote, and unsuccessfully sought to postpone the tax measure until the Oct. 18 assembly meeting.
"I'm 79 years, eight months old," he said. "We wasted 15 minutes of my precious time talking about something that may not happen. Okay? It's ridiculous. That's why I think we ought to postpone it until something happens."
A yes vote on the Oct. 4 ballot would place a 5 percent sales tax on marijuana in the borough organizations. An amendment introduced by assemblyman Randall Kowalke means the cities of Houston, Palmer and Wasilla will be exempt for the portion of sales tax they charge, up to the 5 percent total.
The unamended motion drew opposition from the city of Houston, where officials anticipate marijuana could easily become among its top sources of tax revenue. The city council passed a resolution June 16 asking for incorporated areas to be exempted.
Deputy Mayor Lance Wilson said stacking taxes could make Houston non-competitive with other jurisdictions without similar effects.
"I'm very concerned that the way you have the legislation written currently, you'll be placing a 5 percent borough tax on top of the city of Houston's 2 percent general sales tax," he said. "That won't do any of us any good, even if Houston becomes the only place in the borough where it's legal to sell. You might be pricing us out of the market."
For example, Anchorage and Fairbanks had each set marijuana-focused taxes at 5 percent. The sales tax with the borough tax on top would effectively make Houston's marijuana rate 7 percent.
Kowalke's amendment drew some opposition from Mayfield, who said it was unrealistic to think people would drive to Anchorage or Fairbanks specifically to buy marijuana.
"The reality is that marijuana will likely become a commodity of convenience, just like cigarettes and liquor," he said. "If you're going to be there, then you're gonna buy the product. Then it becomes more inevitable that Houston is the only area in the borough that allows commercialization of marijuana."
Assemblyman Steve Colligan said he supported the amendment. In order for voters to make an informed decision for the October poll, they should know the possible tax plans that will go into effect as a result.
"Taxation is one of the major tenants of this discussion in the public, and to not have that out there, or a stake in the ground, or the public understand what that is or part of the discussion just allows for too much manipulation," he said. "It's going to add to more confusion about the actual discussion."
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Voters Will Decide Sales Tax For Marijuana
Author: Brian O'Connor
Contact: 907-352-2250
Photo Credit: Frontiersman
Website: Frontiersman
