Katelyn Baker
Well-Known Member
Many medical marijuana patients were worried that a ballot measure legalizing cannabis for recreational use in California would make the price of their medicine go up.
Instead, for some, pot got cheaper — though maybe not for long.
The state Board of Equalization recently sent notice that anyone who has both a doctor's recommendation for marijuana and a county-issued ID card identifying the holder as a patient no longer has to pay state sales tax, thanks to Proposition 64.
The measure, which passed Nov. 8 with 56 percent of the vote, made it legal for Californians to consume weed for pleasure. It also created a new licensing and tax structure for all marijuana businesses in the state.
Most experts didn't expect any of the bill's tax provisions to kick in for another year, when a new 15 percent excise tax is slated to take effect.
So while medical marijuana patients are celebrating news of their early tax break, some state leaders are crying foul over the potential, unexpected loss of millions in tax revenue over the next year.
Meanwhile, the Board of Equalization and authors of Prop. 64 are scrambling to find a quick fix.
SOURCE OF THE CONFLICT
The dispute comes from differences in how Prop. 64 is interpreted.
The measure states that all marijuana sales — both recreational and medical — will include an excise tax of 15 percent starting Jan. 1, 2018.
But the initiative exempts medical marijuana patients who have county ID cards from regular state sales tax, which runs from 7.5 percent to 10 percent in California cities.
The goal, an attorney for the Yes on 64 camp said, was to keep marijuana affordable for patients without making it so much cheaper that recreational consumers would be motivated to fake illnesses so that they could get in on the tax breaks.
The independent Legislative Analyst's Office predicted that tax revenue from Prop. 64 will eventually mean an extra $1 billion for the state each year.
The problem is that Prop. 64 didn't specify when the sales tax reduction for patients would kick in.
State Board of Equalization members — several of whom openly opposed Prop. 64 — ruled that, along with the personal rights granted by the measure, the tax exemption for medical marijuana patients became effective Nov. 9.
That's because per the state constitution, all ballot measure provisions take effect at midnight on Election Day unless the initiative specifically says otherwise.
Drafters of Prop. 64 called this interpretation of the tax plan "absurd."
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Millions In Marijuana Taxes May Go Up In Smoke
Author: Brooke Edwards Staggs
Contact: (951) 684-1200
Photo Credit: Rodrigo Pena
Website: The Press Enterprise
Instead, for some, pot got cheaper — though maybe not for long.
The state Board of Equalization recently sent notice that anyone who has both a doctor's recommendation for marijuana and a county-issued ID card identifying the holder as a patient no longer has to pay state sales tax, thanks to Proposition 64.
The measure, which passed Nov. 8 with 56 percent of the vote, made it legal for Californians to consume weed for pleasure. It also created a new licensing and tax structure for all marijuana businesses in the state.
Most experts didn't expect any of the bill's tax provisions to kick in for another year, when a new 15 percent excise tax is slated to take effect.
So while medical marijuana patients are celebrating news of their early tax break, some state leaders are crying foul over the potential, unexpected loss of millions in tax revenue over the next year.
Meanwhile, the Board of Equalization and authors of Prop. 64 are scrambling to find a quick fix.
SOURCE OF THE CONFLICT
The dispute comes from differences in how Prop. 64 is interpreted.
The measure states that all marijuana sales — both recreational and medical — will include an excise tax of 15 percent starting Jan. 1, 2018.
But the initiative exempts medical marijuana patients who have county ID cards from regular state sales tax, which runs from 7.5 percent to 10 percent in California cities.
The goal, an attorney for the Yes on 64 camp said, was to keep marijuana affordable for patients without making it so much cheaper that recreational consumers would be motivated to fake illnesses so that they could get in on the tax breaks.
The independent Legislative Analyst's Office predicted that tax revenue from Prop. 64 will eventually mean an extra $1 billion for the state each year.
The problem is that Prop. 64 didn't specify when the sales tax reduction for patients would kick in.
State Board of Equalization members — several of whom openly opposed Prop. 64 — ruled that, along with the personal rights granted by the measure, the tax exemption for medical marijuana patients became effective Nov. 9.
That's because per the state constitution, all ballot measure provisions take effect at midnight on Election Day unless the initiative specifically says otherwise.
Drafters of Prop. 64 called this interpretation of the tax plan "absurd."
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Millions In Marijuana Taxes May Go Up In Smoke
Author: Brooke Edwards Staggs
Contact: (951) 684-1200
Photo Credit: Rodrigo Pena
Website: The Press Enterprise
