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Tax relief proposed for pot clubs
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SAN FRANCISCO (Map, News) - Medical marijuana sellers across the state would have millions of dollars in unpaid back taxes pardoned in an effort to spare them from bankruptcy and encourage them to pay sales tax under a bill introduced by a San Francisco lawmaker.
Although federal rules state that using marijuana is a crime, medical marijuana can be legally sold in California under a state law approved by voters in 1996. It wasn’t until 2005, however, that the California Board of Equalization ruled that medical marijuana dispensaries must pay sales tax.
As a result, many dispensaries that opened before 2005 have “massive” back-tax burdens that could force them out of business, according to Bruce Mirken, a San Francisco-based spokesman for the nonprofit Marijuana Policy Project.
“A lot of these dispensaries really do want to be responsible citizens and pay taxes as appropriate, but many of them weren’t sure what to do for a long time,” Mirken said.
A bill introduced recently by state Sen. Carole Migden, D-San Francisco, would forgive sales tax debts accrued prior to October 2005 if the marijuana traders register before April 2009 to pay sales tax.
Board of Equalization Vice-Chair Betty Yee said it would be “appropriate” to provide amnesty to the dispensaries because they didn’t charge sales tax to their customers before 2005.
Yee said although there’s no estimate for the amount of money that is owed by the dispensaries, it would be in the “millions of dollars.”
Providing back-tax amnesty to dispensaries that register to pay sales tax could help the state and its municipalities raise an estimated $25 million to $30 million a year in new sales tax receipts, according to Yee.
Forgiving dispensaries’ back taxes would encourage them to register to pay sales tax, according to San Francisco-based lawyer Matt Kumin, who represents dispensaries.
A total of 31 dispensaries in San Francisco have obtained city permits or applied for permits to operate legally in San Francisco, according to Planning Department official Tara Sullivan, who added that “many more” could be operating without permits.
Kevin Reed, who operates a cannabis delivery service in San Francisco, said new patients are given a brochure that explains that marijuana prices include sales tax, but “it’s an area nobody really wants to talk about,” so “we never mention it again.”
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1:00 PM MST on Wed., Mar. 12, 2008 re: "Pot-growing woman, 60, reports to prison"
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Examiner Reader said:
Regardless if many prescriptions are not legitimate, neither are the majority of opiate derived painkillers taken in the US. What people need to realize is that even if you don't support marijuana, this is our freedom at stake, with the federal government undermining our authority every day. You people who disagree are the same people who so willingly vote your human rights away one piece at a time. The fact of the matter is that pot is safer than alcohol in terms of physical and psychological health, and any doctor with any familiarity with the pharmacokinetics involved in THC will agree. Too bad the media/government mindset soaks into the fickle brains of those who are unable to accurately think for themselves. I feel terribly sorry for this woman.
8 agree | 5 disagree
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Examiner Reader said:
So these drug selling thieves are collecting taxes from their customers and they don't have to pay anyone. They already charge an outrageous amount for the dope they sell make huge profits and now when the state and city needs monies - they don't have to pay? Effing please. Excuse me Feds, what happened to the letters to the landlords? Shouldn't these places all be closed by now?
5 agree | 5 disagree
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Examiner Reader said:
Yea, this is a good idea. Someone stoned on dope while running a backhoe with co-workers in a hole next to the bucket. One wrong move could crush them. Or a cop on medical marijuana with his gun drawn. People high at work is a really good idea.....NOT!!!!
29 agree | 29 disagree
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m.s. jackson said:
an observation: ...tim is not the only person from another incomprehensible dimension (dement-shun?), who reads the Examiner. After all at least 61 were able to understand the psychobabble well enough to agree and another 66 who were able to disagree with the non-statement. There does seem to be a connection in that mess with illegal aliens and medical marijuana. Unless Martians have landed in Humboldt county I don't think the word "aliens" applies. But, like I said, incomprehensible.
68 agree | 95 disagree
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m.s. jackson said:
Testing positive for medicinal marijuana use does not mean the person is high while at work. Considering how many people I have worked with who are obviously high on their antidepressants/psychotics/whatevers (can they get any more manic or wierd?) I would almost prefer a stoner who can be depended upon to have the same, if somewhat slow, personality on a daily basis. And what is more dangerous at work than someone with a major, or even minor, hangover? Hypocrites unite!
64 agree | 68 disagree
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Examiner Reader said:
That is ridiculous the companies would say they could be held liable if a "high" worker is injured, or injuries someone else. Did they READ the actual law? If an employee is "high" while at work, that employee is in direct VIOLATION of the law, thus the EMPLOYEE not EMPLOYER is held liable. The law allows for medical marijuana to be used during NON-work hours and AT HOME, NOT AT WORK. The argument is undeniably flawed, and completely inaccurate. I hope they get called on their complete misinterpretation of the law passed by voters!
168 agree | 148 disagree
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Examiner Reader said:
maybe if so many people, esp. in this town, who lie about their "need" for medical pot and are just smoking it to have a good time wold stop it, then legitimate users would not get screwed. Come on I see those ads in the papers they are night clubs not medical offices and "Doc 420" will give you a script for no reason. Smoke on that, losers.
166 agree | 152 disagree
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Examiner Reader said:
It goes to show how scared the politicos of losing their drug money from the pharmacuetical companies that kill thousands each week while a safe and effective herb is used to get more money for a failed drug war. Rumsfeld profitted mightily from Vioxx and the bird flu vaccines that were never used. Let this drug lord do his time for the death of innocent Americans.
146 agree | 139 disagree
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William Cooke said:
Yet another reason to impeach Bush and to vote for Ron Paul! This is a disgrace!
165 agree | 159 disagree
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