Posts Tagged ‘taxes’

California Collects $100 Million In Marijuana Sales Taxes

​California is collecting between $50 million and $100 million a year in sales taxes from medical marijuana, according to the California Board of Equalization, confirming an estimate previously published in an economic analysis by California NORML.

The numbers were also independently confirmed by patient advocacy group Americans for Safe Access.

The state’s retail market for medical marijuana has surpassed $1 billion per year, according to California NORML estimates, with a total adult use market of $6 billion.

An initiative to legalize and tax cannabis for adult use will be on this November’s ballot in the Golden State.

Marijuana opponents, led by Los Angeles County District Attorney Steve Cooley, have tried to choke off the state’s lucrative medical marijuana market by claiming that all marijuana sales are illegal.

The stand stands to lose tens of millions of dollars in sales tax revenues and millions more in enforcement costs if Southern California’s dispensaries are closed, according to Cal NORML Director Dale Gieringer.

“Marijuana prohibition is a losing proposition for California’s taxpayers,” Gieringer said. “On one hand it costs the state to arrest, prosecute, and imprison marijuana offenders, and on the other it deprives the state of valuable tax revenues.”

Adult use legalization could net the state some $1.4 billion in revenues, according to California’s Legislative Analyst’s Office, or more than $1.2 billion by California NORML’s estimate.

Source

Pot? Check. Taxes. Check. Step Three: Profit.

San Jose took a step toward welcoming medical cannabis into its fair city on Tuesday night — 14 years after state voters approved medical cannabis, six months after pot clinics began sprouting up in Northern California’s largest city and about five months after a city council member openly declared the cash-strapped burg ought to do something about it all: namely, start taxing.

Via a 7-3 vote last night, the council essentially said, “Yes, we ought to do something about it, and we will — in June, when city staff comes back to us with a regulation and taxation plan that they’ll spend the next few months concocting.” Not exactly words to foment a revolution — but for those who’d like to see green generating green in San Jose, it’s a good day. “San Jose took a pragmatic step,” Councilmember Pierluigi Oliverio said Wednesday. “We said, ‘We want a limited number of dispensaries in limited places, and we want them taxed.’”

Pot? Check. Taxes. Check. Step three: Profit.

Nothing left now but the wrangling over the details: minor points like what the business tax levied on dispensaries should be; if they should be restricted to industrial space in San Jose;  if there should be a strict cap on the number of dispensaries; if the permitting fee should be $10,000 or $30,000 per dispensary.

Wait, those are all major points, some with the ability to muck up the process entirely, said Lauren Vazquez of the Silicon Valley chapter of Americans for Safe Access. Lengthy haranguing over just those details is partially to blame for the drawn-out saga of dispensary regulation in Los Angeles, now at two years and counting. Did you ever think it’d be the marijuana advocates getting all serious and killing the buzz?

“We want to make sure [patients] are involved in the drafting process,” she said. “That way we can get an ordinance that’s reasonable, not too restrictive, and we’ll avoid a lot of the going back and forth.” Continue reading

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