Oakland, Cali to Tax Pot

[Chunkybuddha]

In about ten minutes voting closes and Oakland, California will be officially taxing medicinal marijuana. Source: CNN news.

 

[Blue Dot]

Is this the Richard Lee initiative that he wants to put to a vote for the entire state?

 

[Pay_Attention]

Nah. Same backers though. This is measure F that groups 'cannabis businesses' together and adds a 1.8% business tax to them. Slightly intertwined as Oakland pot, inc. proposed the tax at least in part to gather political capital and use the positive press for the measure to splash over onto the initiative. But very different in actual wording and effect.

 

[JackTheGrower]

http://www.insidebayarea.com/ci_12675904

Measure F: New tax for medical pot
By Kelly Rayburn
Oakland Tribune
Posted: 06/23/2009 05:00:00 PM PDT
Updated: 06/23/2009 08:58:30 PM PDT


Measure F carries with it perhaps the smallest financial benefit to the city, though its backers like something else about the proposal: the potential to further legitimize medical pot.

Measure F would create a new business tax rate for Oakland's four legally operating medical marijuana clubs, hitting them with a levy of $18 for every $1,000 in gross sales.

That compares to $1.20 for every $1,000 in gross sales the clubs now pay under the standard retail business tax.

The proposed tax could produce a windfall of $315,000 — $294,000 more than under the current rate — in the 2010 calendar year, according to an analysis from City Auditor Courtney Ruby's office.

The clubs see the ballot measure as a way to help the broader cause of medical marijuana.

"Criminals don't pay taxes," said James Anthony, an attorney for Harborside Health Center, one of the dispensaries. "Law-abiding citizens do. We are nothing if not law-abiding citizens."

Medical marijuana is legal under California law, but prohibited by federal law. But some see a turning point in how people across the United States view the use of marijuana for medical purposes. For example, Councilmember Rebecca Kaplan (at-large) noted that U.S. Attorney General Eric Holder has said the Obama administration will end the federal raids on medical pot clubs operating in California or other states that have protected medical use.

"It is important that there be regulation and that there be a permit process and that there be taxation," Kaplan said. "Both because the city needs the revenue and to be sure that we weed out the bad actors."

Measure F came about after the clubs approached Councilmembers Kaplan and Nancy Nadel (Downtown-West Oakland) about instituting a new tax, Kaplan said.

The measure needs a simple majority to pass. Anthony said he expects the clubs, not patients, will absorb the cost of the tax.

— Kelly Rayburn

It's a mail in only.. I thought??

 

[Hash Zeppelin]

cool

 

[masterKahn]

good news it seems

 

[Pythagllio]

These people know that money talks, bullshit walks. Give the gov't a regular stream of income and the politicians are like crack addicts, they can't give it up once it's coming in.

 

[LiLWaynE]

good job oakland...

Oakland voters pass pot tax to boost city coffers

OAKLAND, Calif. – Oakland residents overwhelmingly voted Tuesday to approve a first-of-its kind tax on medical marijuana sold at the city's four cannabis dispensaries.

Preliminary election results showed the measure passing with 80 percent of the vote, according to the Alameda County Registrar of Voters.

The dispensary tax was one of four measures in a vote-by-mail special election aimed at raising money for the cash-strapped city. All four measures won, but Measure F had the highest level of support.

Scheduled to take effect on New Year's Day, the measure created a special business tax rate for the pot clubs, which now pay the same $1.20 for every $1,000 in gross sales applied to all retail businesses. The new rate will be $18.

Oakland's auditor estimates that based on annual sales of $17.5 million for the four clubs, it will generate an estimated $294,000 for city coffers in its first year.

Pot club owners, who openly sell pot over the counter under the 1996 state ballot measure that legalized medical marijuana use in California, proposed Measure F as a way to further legitimize their establishments.

"It's good business and good for the community," said Richard Lee, who owns the Coffee Shop SR-71 dispensary and Oaksterdam University, a trade school for budding dispensary workers.

The measure had no formal opposition; in November 2004, a ballot initiative that required Oakland police to make arresting adults using marijuana for personal use their lowest priority passed with 63 percent of the vote.

Support for Measure F was expected to be just as strong. As a result and given the mail-in nature of the election, there was little campaign activity, according to Lee.

"We put out signs, but outside of that it's been pretty low-key," said Lee, who hosted a victory party at Oaksterdam University's Student Union building in downtown Oakland.

Although California's 800 or so pot clubs also are expected to pay state sales tax, Oakland is the first city in the country to create a special tax on marijuana sales.

Advocates of legalizing pot for recreational use hope to use Oakland's experience with Measure F to persuade California voters next year to approve a measure that would legalize and regulate marijuana like alcohol.


.

 

[BigMo]

Sweet now let's hope it catches on around the country.

 

[Moldy Dreads]

Great news, I don't see any cons to it, so far it seems to be a positive thing as it would further prove that $$ can be generated from the sale of such a great herb.

 

[JackTheGrower]

Great news, I don't see any cons to it, so far it seems to be a positive thing as it would further prove that $$ can be generated from the sale of such a great herb.

Exactly..

Money is the bigger drug!

That people see "Tokers" getting off tax free is a motivator it legalize for some or many!!


Jack

 

[sunwukong]

These people know that money talks, bullshit walks. Give the gov't a regular stream of income and the politicians are like crack addicts, they can't give it up once it's coming in.

Well said. Thats the only reason tobacco isn't illegal. Worse than cannabis, but the goverment can't give up those tax dollars and kickbacks from big tobacco.

 

[JackTheGrower]

Well said. That's the only reason tobacco isn't illegal. Worse than cannabis, but the government can't give up those tax dollars and kickbacks from big tobacco.

Ain't it true.. They have coddled them to death..

But yeah.. Taxes are the "Porn" of Government for sure! They all like them unless it hits home..

 

[texsativa]

This is very good. I was wondering where the first place would be, Cali or Oregon. Oakland it is.