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Palm Springs City Council, Wednesday night, unanimously approved placing a measure on the Nov. 5 ballot that will allow voters to decide if the city's permitted medical marijuana dispensaries will be taxed up to 15 percent on their sales.
"This is not a tax on the medicine," Councilwoman Ginny Foat said. "The medicine is already taxed. This is not a tax on the product. This directly has to do with the collectives themselves."
City leaders contend the city has incurred significant expense regulating and auditing the dispensaries.
"It's a very profitable business," Mayor Steve Pougnet said. "Don't make any mistake about it – it is. ... The profit margin will shrink a little bit. But it's a huge profit margin."
If voters approve the measure this November, the city would collect up to $15 for every $100 sold, said City Attorney Doug Holland.
Council members also unanimously voted Wednesday night to ban medical marijuana delivery services in Palm Springs that are not affiliated with the three legal dispensaries now operating in the city.
News of the potential tax on dispensaries has the operator at one of the three legal dispensaries worried because of the timing.
"We're trying to keep prices down. Not up," said Jim Camper, president of Organic Solutions of the Desert.
"My concern ... is we're not perceived as raising the prices; monopolizing on the fact that they closed the illegals," he said.
In recent months the city has been working to close illegal dispensaries in some cases sending police to ensure court order compliance. Three illegal dispensaries remain open.
A fear of some patients who frequented the now-closed illegal dispensaries was price-gouging by the still-open legal dispensaries
"The patients are not going to be happy," said Camper.
If the tax moves forward, Palm Springs would join the ranks of other California cities like San Jose, Oakland, Long Beach and Los Angeles that all levy taxes on medical marijuana.
"We looked at what a number of other cities have done and they've ranged anywhere from $2.50 to $15," he said of the tax.
"These all passed anywhere from 63 percent to as high 83 percent of voters," said Holland.
If the City Council voted to approve the measure, Holland said they would have to decide the amount to levy up to 15 percent, or $15 for every $100.
The general tax measure would need to be approved by a majority of voters to pass.
"It's something that we think the council should consider in light of the fact that the California Supreme Court has basically blessed local regulation and this is a kind of activity that does require a great deal of scrutiny and oversight and monitoring and there are costs that are associated with working with these type of programs," said Holland.
The state Supreme Court on May 6 ruled that local municipalities can ban medical marijuana dispensaries.
The state ruling did not however address illegal mobile pot operators, which have now become the target of local municipalities.
News Hawk- Truth Seeker 420 MAGAZINE ®
Source:mydesert.com
Author: Desert Sun Staff Reports
Contact: Feedback | The Desert Sun | mydesert.com
Website: The Desert Sun | Palm Springs and Coachella Valley news
"This is not a tax on the medicine," Councilwoman Ginny Foat said. "The medicine is already taxed. This is not a tax on the product. This directly has to do with the collectives themselves."
City leaders contend the city has incurred significant expense regulating and auditing the dispensaries.
"It's a very profitable business," Mayor Steve Pougnet said. "Don't make any mistake about it – it is. ... The profit margin will shrink a little bit. But it's a huge profit margin."
If voters approve the measure this November, the city would collect up to $15 for every $100 sold, said City Attorney Doug Holland.
Council members also unanimously voted Wednesday night to ban medical marijuana delivery services in Palm Springs that are not affiliated with the three legal dispensaries now operating in the city.
News of the potential tax on dispensaries has the operator at one of the three legal dispensaries worried because of the timing.
"We're trying to keep prices down. Not up," said Jim Camper, president of Organic Solutions of the Desert.
"My concern ... is we're not perceived as raising the prices; monopolizing on the fact that they closed the illegals," he said.
In recent months the city has been working to close illegal dispensaries in some cases sending police to ensure court order compliance. Three illegal dispensaries remain open.
A fear of some patients who frequented the now-closed illegal dispensaries was price-gouging by the still-open legal dispensaries
"The patients are not going to be happy," said Camper.
If the tax moves forward, Palm Springs would join the ranks of other California cities like San Jose, Oakland, Long Beach and Los Angeles that all levy taxes on medical marijuana.
"We looked at what a number of other cities have done and they've ranged anywhere from $2.50 to $15," he said of the tax.
"These all passed anywhere from 63 percent to as high 83 percent of voters," said Holland.
If the City Council voted to approve the measure, Holland said they would have to decide the amount to levy up to 15 percent, or $15 for every $100.
The general tax measure would need to be approved by a majority of voters to pass.
"It's something that we think the council should consider in light of the fact that the California Supreme Court has basically blessed local regulation and this is a kind of activity that does require a great deal of scrutiny and oversight and monitoring and there are costs that are associated with working with these type of programs," said Holland.
The state Supreme Court on May 6 ruled that local municipalities can ban medical marijuana dispensaries.
The state ruling did not however address illegal mobile pot operators, which have now become the target of local municipalities.
News Hawk- Truth Seeker 420 MAGAZINE ®
Source:mydesert.com
Author: Desert Sun Staff Reports
Contact: Feedback | The Desert Sun | mydesert.com
Website: The Desert Sun | Palm Springs and Coachella Valley news
