Jim Finnel
Fallen Cannabis Warrior & Ex News Moderator
Canon City Daily Record - Now that Colorado Attorney General John Suthers has ruled that governments can collect taxes on medical marijuana sales, the state, cities and counties ought to proceed full speed ahead to do so.
It's been nearly a decade since Colorado voters approved the sale of medical marijuana to people who need it for chronic pain and other medical conditions.
The medical marijuana industry got a slow start because what Colorado voters approved was contrary to federal drug laws. The federal government has now said that it will not interfere with state laws on this matter.
That's why Colorado communities including Longmont are seeing an explosion of medical marijuana merchants setting up shop. The Longmont City Council in October approved a three-month moratorium on additional marijuana establishments until the council can devise local ordinances to regulate them.
But there's no reason to delay collection of sales taxes.
Under state law, even the sales of illegal drugs are subject to sales taxes, although for obvious reasons they are never collected.
In the case of medical marijuana, Suthers ruled that its sale is a personal property transaction and not a prescription drug transaction. This is important because prescription drugs are exempt from sales taxes.
Since medical marijuana is not handled by licensed pharmacies and not subject to the same laws that affect pharmaceuticals, there's no barrier to charging sales tax.
The state expects to collect $15 million a year in marijuana sales taxes. Local governments would collect upward of $45 million.
Governments at all levels are hungry for more tax revenue given the downturn in economic activity in the state. And while applying new taxes to business is not a wise plan during an economic downturn, in this case it makes no sense to grant a special exemption to a business that Colorado voters have said can exist in the state.
NewsHawk: User: 420 MAGAZINE ® - Medical Marijuana Publication & Social Networking
Source: Canon City Daily Record (US CO)
Copyright: 2009 Royal Gorge Publishing Corporation.
Contact: lspaulding@ccdailyrecord.com
Website: Cañon City Daily Record Newspaper, Cañon City, Colorado
It's been nearly a decade since Colorado voters approved the sale of medical marijuana to people who need it for chronic pain and other medical conditions.
The medical marijuana industry got a slow start because what Colorado voters approved was contrary to federal drug laws. The federal government has now said that it will not interfere with state laws on this matter.
That's why Colorado communities including Longmont are seeing an explosion of medical marijuana merchants setting up shop. The Longmont City Council in October approved a three-month moratorium on additional marijuana establishments until the council can devise local ordinances to regulate them.
But there's no reason to delay collection of sales taxes.
Under state law, even the sales of illegal drugs are subject to sales taxes, although for obvious reasons they are never collected.
In the case of medical marijuana, Suthers ruled that its sale is a personal property transaction and not a prescription drug transaction. This is important because prescription drugs are exempt from sales taxes.
Since medical marijuana is not handled by licensed pharmacies and not subject to the same laws that affect pharmaceuticals, there's no barrier to charging sales tax.
The state expects to collect $15 million a year in marijuana sales taxes. Local governments would collect upward of $45 million.
Governments at all levels are hungry for more tax revenue given the downturn in economic activity in the state. And while applying new taxes to business is not a wise plan during an economic downturn, in this case it makes no sense to grant a special exemption to a business that Colorado voters have said can exist in the state.
NewsHawk: User: 420 MAGAZINE ® - Medical Marijuana Publication & Social Networking
Source: Canon City Daily Record (US CO)
Copyright: 2009 Royal Gorge Publishing Corporation.
Contact: lspaulding@ccdailyrecord.com
Website: Cañon City Daily Record Newspaper, Cañon City, Colorado
