Grasscity.com Forums - View Single Post - Californa Opposes Tax Upon Medical Marijuana

modern-hippy · #1 (**permalink**) 02-17-2007, 08:22 AM

Californians consume between $870 million and $ 2 billion worth of medical marijuana per year, according to a report <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com

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></o

>to Oakland's Measure Z marijuana policy oversight committee.
The report projects that the state could receive some $70 million to $120 million in sales tax revenues alone if medical marijuana was taxed legally like other herbal medicines. <o

></o

>
At present only a portion of the state's 200-plus medical cannabis dispensaries pay sales taxes. In principle, medical cannabis is subject to sales tax under current Board of Equalization rules, which exempt only drugs dispensed in licensed pharmacies by a physician's prescription. However, many patients' groups contend that sales tax shouldn't apply to non-profit cooperatives and collectives.<o

></o

>
A substantial portion of medical cannabis sales remains off the books due to the continued illegality of marijuana under federal law, which discourages accurate reporting. Despite this, a growing number of communities, led by Oakland, have begun to legally regulate and license medical cannabis sales through dispensaries. Although federal officials have sought to portray dispensaries as criminal enterprises, most have lawfully complied with local regulations like other legal businesses.<o

></o

>
According to the Oakland business tax office, the city's medical cannabis dispensaries reported $26 million in revenues in fiscal year 2004. Revenues declined dramatically to just $5 million in FY 2006 after the city forced all but two of the city's cannabis clubs to close. Revenue is expected to rebound this year, as two new clubs have opened. The report estimates that potential revenues from medical dispensaries in greater Oakland could range as high as $64 million. Oakland's cannabis clubs pay the city an annual licensing fee of $20,000 plus a business tax of 0.1% on revenues.<o

></o

>
In addition, many dispensaries pay substantial payroll taxes. A Modesto dispensary, California Healthcare Collective Inc., reported paying $93,000 per quarter in federal IRS taxes, $25,000 per quarter in state payroll taxes, and $50-60,000 per month in sales taxes before being raided by the DEA. Closure of the club has deprived the public of over $1 million in tax revenues per year.<o

></o

>
It is estimated that between 150,000 and 350,000 Californians have a physician's recommendation to use marijuana. Because California does not have a comprehensive patient registry, these numbers are based on projections from physician surveys and data from other states. Medical users represent around 10% of the state's total marijuana-using population. Average consumption is around one pound per patient annually. <o

></o

>
The marijuana used by California patients is entirely locally grown. However, due to steep federal penalties against cultivation, growers operate underground completely unregulated and untaxed. Prop 215 advocates have long sought to establish licensed production of medical cannabis to assure pharmaceutical purity and quality, but have been rebuffed by federal agencies intent on keeping marijuana illegal.<o

></o

>
California NORML supports changing federal law so the state can legally regulate and tax commercial production and distribution of medical cannabis. A bill to allow states to regulate medical marijuana has been proposed by Rep. Barney Frank in recent sessions of Congress. <o

></o

>
Advocates argue that it makes better economic sense to legally regulate and tax marijuana than to criminalize it. State taxpayers currently spend over $160 million per year to arrest, prosecute and imprison marijuana offenders. Altogether, Californians consume nearly $6 billion of marijuana per year. California NORML estimates that the state could net some $1.5 - $2.5 billion per year by legalizing marijuana for general adult use (see report).
California voters have shown growing interest in legalizing marijuana. In 2004, Oakland voters approved Measure Z, calling on the state to "tax and regulate" marijuana for general adult use, by 65%-35%. Last November, similar measures were approved by the voters of Santa Cruz and the San Francisco Board of Supervisors.<o

></o

>
A copy of the Oakland Measure Z Oversight Committee report, "Revenue & Taxes from Oakland's Cannabis Economy," can be found at: www.canorml.org/background/OakZFinancialReport.pdf <o

></o

>

Release by <o

></o

>California NORML Jan 3, 2007

May 17, 2006

A California Tax Dollar and Medical Marijuana

Kenneth Michael White Hello, I am a California Tax Dollar and I have a problem with the way I am being spent by some California law enforcement officials.

Because there is currently a difference between California law and Federal law regarding medical marijuana, there is some confusion about what a California law enforcement officer should do when encountering marijuana during the normal course of duties.

If a person has a serious illness and a doctor’s recommendation to use marijuana, then under California law there is no grounds for arrest and/or prosecution. Under Federal law, however, all marijuana is contraband. This difference of laws has led the California Attorney General to take the position that local police officers “should not” enforce Federal drug laws against legitimate medical marijuana patients, which is not the same thing as saying they “shall not” enforce such laws.

It has been argued that because California police officers are sworn to uphold both the United States Constitution and the Constitution of California, this makes it okay for California Tax Dollars (me and my friends) to be spent enforcing Federal law against legitimate medical marijuana patients. But how can a California Tax Dollar be spent criminalizing conduct the State of California considers lawful?

The problem may not seem like much to some. I recognize that many jurisdictions in California do not spend public funds criminalizing medical marijuana, however, some do. Local law enforcement personnel in the Bay Area, Butte County, Kern County, Merced County, Riverside County, Sacramento, San Diego, Stanislaus County, and Trinity County have all assisted Federal authorities in medical marijuana investigation and enforcement actions.

These actions have violated the principle of federalism and instilled fear in patients who have had their medical records seized and/or their only avenue to safe access to medical marijuana interrupted. This fear and loss of privacy are criminal sanctions that are not supposed to happen (at the behest of California officials) to legitimate medical marijuana patients under California law.

To enforce the law, the police must first uphold it. While the voters of California cannot prevent the Federal Government from enforcing Federal law, they can prevent their own local police officers from spending me (a California Tax Dollar) on activities that punish the sick and dying.

California police officers must not spend a California Tax Dollar helping Federal authorities criminalize medical marijuana. I should be spent on education instead.

sorces = http://www.opinioneditorials.com/fre..._20060517.html

http://www.canorml.org/background/Oa...eportRelse.htm

#1 (permalink) 02-17-2007, 08:22 AM
modern-hippy Registered User Join Date: May 2004 Posts: 869	Californa Opposes Tax Upon Medical Marijuana Californians consume between $870 million and $ 2 billion worth of medical marijuana per year, according to a report <?xml:namespace prefix = o ns = "urn:schemas-microsoft-comfficeffice" /><o></o>to Oakland's Measure Z marijuana policy oversight committee. The report projects that the state could receive some $70 million to $120 million in sales tax revenues alone if medical marijuana was taxed legally like other herbal medicines. <o></o> At present only a portion of the state's 200-plus medical cannabis dispensaries pay sales taxes. In principle, medical cannabis is subject to sales tax under current Board of Equalization rules, which exempt only drugs dispensed in licensed pharmacies by a physician's prescription. However, many patients' groups contend that sales tax shouldn't apply to non-profit cooperatives and collectives.<o></o> A substantial portion of medical cannabis sales remains off the books due to the continued illegality of marijuana under federal law, which discourages accurate reporting. Despite this, a growing number of communities, led by Oakland, have begun to legally regulate and license medical cannabis sales through dispensaries. Although federal officials have sought to portray dispensaries as criminal enterprises, most have lawfully complied with local regulations like other legal businesses.<o></o> According to the Oakland business tax office, the city's medical cannabis dispensaries reported $26 million in revenues in fiscal year 2004. Revenues declined dramatically to just $5 million in FY 2006 after the city forced all but two of the city's cannabis clubs to close. Revenue is expected to rebound this year, as two new clubs have opened. The report estimates that potential revenues from medical dispensaries in greater Oakland could range as high as $64 million. Oakland's cannabis clubs pay the city an annual licensing fee of $20,000 plus a business tax of 0.1% on revenues.<o></o> In addition, many dispensaries pay substantial payroll taxes. A Modesto dispensary, California Healthcare Collective Inc., reported paying $93,000 per quarter in federal IRS taxes, $25,000 per quarter in state payroll taxes, and $50-60,000 per month in sales taxes before being raided by the DEA. Closure of the club has deprived the public of over $1 million in tax revenues per year.<o></o> It is estimated that between 150,000 and 350,000 Californians have a physician's recommendation to use marijuana. Because California does not have a comprehensive patient registry, these numbers are based on projections from physician surveys and data from other states. Medical users represent around 10% of the state's total marijuana-using population. Average consumption is around one pound per patient annually. <o></o> The marijuana used by California patients is entirely locally grown. However, due to steep federal penalties against cultivation, growers operate underground completely unregulated and untaxed. Prop 215 advocates have long sought to establish licensed production of medical cannabis to assure pharmaceutical purity and quality, but have been rebuffed by federal agencies intent on keeping marijuana illegal.<o></o> California NORML supports changing federal law so the state can legally regulate and tax commercial production and distribution of medical cannabis. A bill to allow states to regulate medical marijuana has been proposed by Rep. Barney Frank in recent sessions of Congress. <o></o> Advocates argue that it makes better economic sense to legally regulate and tax marijuana than to criminalize it. State taxpayers currently spend over $160 million per year to arrest, prosecute and imprison marijuana offenders. Altogether, Californians consume nearly $6 billion of marijuana per year. California NORML estimates that the state could net some $1.5 - $2.5 billion per year by legalizing marijuana for general adult use (see report). California voters have shown growing interest in legalizing marijuana. In 2004, Oakland voters approved Measure Z, calling on the state to "tax and regulate" marijuana for general adult use, by 65%-35%. Last November, similar measures were approved by the voters of Santa Cruz and the San Francisco Board of Supervisors.<o></o> A copy of the Oakland Measure Z Oversight Committee report, "Revenue & Taxes from Oakland's Cannabis Economy," can be found at: www.canorml.org/background/OakZFinancialReport.pdf <o></o> Release by <o></o>California NORML Jan 3, 2007 May 17, 2006 A California Tax Dollar and Medical Marijuana Kenneth Michael White Hello, I am a California Tax Dollar and I have a problem with the way I am being spent by some California law enforcement officials. Because there is currently a difference between California law and Federal law regarding medical marijuana, there is some confusion about what a California law enforcement officer should do when encountering marijuana during the normal course of duties. If a person has a serious illness and a doctor’s recommendation to use marijuana, then under California law there is no grounds for arrest and/or prosecution. Under Federal law, however, all marijuana is contraband. This difference of laws has led the California Attorney General to take the position that local police officers “should not” enforce Federal drug laws against legitimate medical marijuana patients, which is not the same thing as saying they “shall not” enforce such laws. It has been argued that because California police officers are sworn to uphold both the United States Constitution and the Constitution of California, this makes it okay for California Tax Dollars (me and my friends) to be spent enforcing Federal law against legitimate medical marijuana patients. But how can a California Tax Dollar be spent criminalizing conduct the State of California considers lawful? The problem may not seem like much to some. I recognize that many jurisdictions in California do not spend public funds criminalizing medical marijuana, however, some do. Local law enforcement personnel in the Bay Area, Butte County, Kern County, Merced County, Riverside County, Sacramento, San Diego, Stanislaus County, and Trinity County have all assisted Federal authorities in medical marijuana investigation and enforcement actions. These actions have violated the principle of federalism and instilled fear in patients who have had their medical records seized and/or their only avenue to safe access to medical marijuana interrupted. This fear and loss of privacy are criminal sanctions that are not supposed to happen (at the behest of California officials) to legitimate medical marijuana patients under California law. To enforce the law, the police must first uphold it. While the voters of California cannot prevent the Federal Government from enforcing Federal law, they can prevent their own local police officers from spending me (a California Tax Dollar) on activities that punish the sick and dying. California police officers must not spend a California Tax Dollar helping Federal authorities criminalize medical marijuana. I should be spent on education instead. sorces = http://www.opinioneditorials.com/fre..._20060517.html http://www.canorml.org/background/Oa...eportRelse.htm __________________ yo... im just like....always chillin