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Palm Springs could generate a lot of revenue if it charged an extra fee for sales of medical marijuana. Other Coachella Valley cities that allow deliveries could cash in, too.
We're not sure they should.
If you accept the argument of advocates of medical marijuana – that it brings relief to those suffering from various ailments in a less toxic form than other drugs – then you're imposing an extra burden on those patients. Like all businesses, dispensaries would pass along the extra cost to the customers.
San Jose charges a 7 percent tax on medical marijuana sales, which generated $3.6 million in the 2011-12 fiscal year. Oakland adds 5 percent and brought in $1.4 million in 2011. San Francisco brings in extra revenue by charging for permits. In 2011, Los Angeles voters approved a $50 fee for every $1,000 in sales.
This is on top of revenue generated from sales tax. Palm Springs, the only valley city that allows dispensaries, netted $22,224 in sales tax revenue from medical marijuana sales in a year.
There is some argument whether even sales tax should be charged on medical marijuana sales. California doesn't charge sales tax on prescription drugs. If you consider medical marijuana to be medicine, it should fall in that category.
But there's the rub. Medical marijuana is not sold in drug stores because the federal government still considers it an illegal Schedule 1 drug, along with cocaine and heroin. Because pharmacists work under federal regulations, they can't sell medical marijuana.
California has charged sales tax on medical marijuana ever since voters approved the Compassionate Use Act of 1996. In 2005, the state Board of Equalization directed its staff to issue sellers permits to all dispensaries, even if they're considered illegal by local jurisdictions. That makes sense because, despite the best efforts of local agencies, there are several illegal dispensaries in our valley and scores across the state.
In 2011, Berkeley Patients Group Inc., a Northern California dispensary, appealed to the board for a sales tax exemption, arguing it should be treated like any other medicine prescribed by a doctor. The board refused.
When the ruling was announced, the staff estimated the state collected $58 million to $105 million a year in sales taxes from $700 million to $1.3 billion in retail sales of medical marijuana. This is a big business.
Proponents of legalizing marijuana for recreational use – which has been approved by voters in Washington and Colorado – argue that it's the best way to dismantle the black market run by criminals and generate revenue for the state.
The Desert Sun opposed the California initiative to legalize marijuana in 2010 and our position hasn't changed. After our iSun story on Marijuana Anonymous and the difficulty of resisting smoking pot to excess on Sunday, we feel even stronger about that.
But marijuana for medical use is different. Voters made a compassionate decision 17 years ago that has brought relief to millions. It's especially important in our valley for the elderly and AIDS patients.
Sometime soon, the California Supreme Court will rule on whether cities and counties can ban medical marijuana dispensaries.
The Desert Sun believes cities should use zoning laws to keep dispensaries away from schools and other places where children congregate.
Perhaps a permit fee is justifiable to cover the cost of regulation. But cities should think twice about turning dispensaries into cash cows.
News Hawk- TruthSeekr420 420 MAGAZINE
Source: mydesert.com
Author: The Desert Sun Editorial Staff
Contact: Feedback | The Desert Sun | mydesert.com
Website: The Desert Sun | Palm Springs and Coachella Valley news
We're not sure they should.
If you accept the argument of advocates of medical marijuana – that it brings relief to those suffering from various ailments in a less toxic form than other drugs – then you're imposing an extra burden on those patients. Like all businesses, dispensaries would pass along the extra cost to the customers.
San Jose charges a 7 percent tax on medical marijuana sales, which generated $3.6 million in the 2011-12 fiscal year. Oakland adds 5 percent and brought in $1.4 million in 2011. San Francisco brings in extra revenue by charging for permits. In 2011, Los Angeles voters approved a $50 fee for every $1,000 in sales.
This is on top of revenue generated from sales tax. Palm Springs, the only valley city that allows dispensaries, netted $22,224 in sales tax revenue from medical marijuana sales in a year.
There is some argument whether even sales tax should be charged on medical marijuana sales. California doesn't charge sales tax on prescription drugs. If you consider medical marijuana to be medicine, it should fall in that category.
But there's the rub. Medical marijuana is not sold in drug stores because the federal government still considers it an illegal Schedule 1 drug, along with cocaine and heroin. Because pharmacists work under federal regulations, they can't sell medical marijuana.
California has charged sales tax on medical marijuana ever since voters approved the Compassionate Use Act of 1996. In 2005, the state Board of Equalization directed its staff to issue sellers permits to all dispensaries, even if they're considered illegal by local jurisdictions. That makes sense because, despite the best efforts of local agencies, there are several illegal dispensaries in our valley and scores across the state.
In 2011, Berkeley Patients Group Inc., a Northern California dispensary, appealed to the board for a sales tax exemption, arguing it should be treated like any other medicine prescribed by a doctor. The board refused.
When the ruling was announced, the staff estimated the state collected $58 million to $105 million a year in sales taxes from $700 million to $1.3 billion in retail sales of medical marijuana. This is a big business.
Proponents of legalizing marijuana for recreational use – which has been approved by voters in Washington and Colorado – argue that it's the best way to dismantle the black market run by criminals and generate revenue for the state.
The Desert Sun opposed the California initiative to legalize marijuana in 2010 and our position hasn't changed. After our iSun story on Marijuana Anonymous and the difficulty of resisting smoking pot to excess on Sunday, we feel even stronger about that.
But marijuana for medical use is different. Voters made a compassionate decision 17 years ago that has brought relief to millions. It's especially important in our valley for the elderly and AIDS patients.
Sometime soon, the California Supreme Court will rule on whether cities and counties can ban medical marijuana dispensaries.
The Desert Sun believes cities should use zoning laws to keep dispensaries away from schools and other places where children congregate.
Perhaps a permit fee is justifiable to cover the cost of regulation. But cities should think twice about turning dispensaries into cash cows.
News Hawk- TruthSeekr420 420 MAGAZINE
Source: mydesert.com
Author: The Desert Sun Editorial Staff
Contact: Feedback | The Desert Sun | mydesert.com
Website: The Desert Sun | Palm Springs and Coachella Valley news
