spacer
spacer
header
Main Menu
Home
Search
Donate
About OPN
Contact Us
Membership
OPAN
News
Event Calendar
Projects
FREE Cannabis
Jury Power
Medical Maps
Speakers
OPN on the Radio
Legal
Media
Patient/Doctor
Patient Profiles
Online Store
Library
Links
FAQs
Interactive
Email Discussion
Teamspeak
MySpace
OPNTalk Forums
OPNews
OPNews Signup
Recent Issues
Archives
Video
Mikeee Show
Ohio Patients Imprisoned
Randy Brush
In Memoriam
 
Home arrow News arrow OPNews May 2007 arrow CALIFORNIA IN BID TO IMPOSE 7.25% SALES TAX ON CANNABIS

CALIFORNIA IN BID TO IMPOSE 7.25% SALES TAX ON CANNABIS PDF Print E-mail

FOR decades, smoking marijuana has been an illicit affair, a key anti-establishment ritual for America's counter-culture underground.

But the legalisation of the drug for medicinal purposes in California has presented its advocates with a dilemma: to remain firmly on the wrong side of the law or accept a demand to pay taxes on its sale.

Marijuana prescribed by a doctor for health reasons was decriminalised in a state-wide referendum in 1996 and has grown into a billion-dollar industry.

About 25,000 patients and carers are now members of the so-called pot clubs.

Chris Moscone, an attorney who represents the Hemp Centre, a San Francisco dispensary, said: "There are basically two camps: those that want to be treated like legitimate businesses, and the other side, who are still rebels and don't want to be taxed."

The situation is further clouded by differences between federal and state law. California's 150 to 200 owners of medicinal marijuana dispensaries have operated legally under state law since 1996 - but illegally under federal law.

And while a demand from state authorities to pay tax is seen by some as further legitimising their business in terms of the state laws, many dispensary owners fear the tax is self-incriminating and will result in punitive measures from the federal government.

The dispensaries have received a state notice urging them to obtain a sales permit for tax reasons. Every purchase of marijuana, which can be bought with a doctor's prescription, would be subject to California's 7.25 per cent sales tax.

But there appears to be substantial resistance among dispensaries to the idea - only 27 dispensary owners currently have a sales permit.

But financial considerations rather than counter-culture affectation may be the reason. Kris Hermes, of Americans for Safe Access, a medical marijuana advocacy group, said more dealers would probably agree to pay the tax if the bill did not include a provision for back taxes on sales over the past eight years.

THE federal Marijuana Tax Act of 1937, introduced by Harry Anslinger, an anti-cannabis campaigner and commissioner of the Federal Bureau of Narcotics, stipulated anyone dealing in the substance had to pay one dollar for each trade, or be fined up to $2,000. This effectively criminalised dealers and led to a nationwide crackdown.

In 1970, federal authorities recognised cannabis as a Schedule 1 narcotic under the Controlled Substances Act.

Last year, the Supreme Court upheld federal authority to prosecute the possession and use of marijuana for medical purposes.

The state of California, however, decriminalised marijuana in 1976 and the 1996 Compassionate Use Act established its use for conditions including cancer, MS and AIDS.

Newshawk: Help for LTE writers www.mapinc.org/resource/#guides
Pubdate: Mon, 09 Apr 2007
Source: Scotsman (UK)
Copyright: 2007 The Scotsman Publications Ltd
Contact: http://members.scotsman.com/contact.cfm
Website: http://www.scotsman.com/
Details: http://www.mapinc.org/media/406
Author: Craig Howie, in Los Angeles
Cited: Americans for Safe Access http://www.safeaccessnow.org

spacer
Join/Donate
via Paypal
GoodSearch: You Search...We Give!
Ohio Medical Marijuana Act

Please contact your legislators regarding the Ohio Medical Marijuana Act!

The Zoretic Patient Defense Fund
To donate to the Zoretic Patient Defense Fund, OPN's patient legal defense fund, simply click the above button. Before entering the amount, please indicate that your donation is for the Zoretic Patient Defense Fund in the Payment For: text box. Thank you for your contribution!

Advertisement
War on Junk
A riotous exploration of prohibition policies, told through the narrative lens of a future America in which the government outlaws junk food in response to widespread obesity. Click on the image to buy this book now. 10% of the purchase price will be donated to OPN.

 
Copyright 2000 - 2005 Miro International Pty Ltd. All rights reserved.
Mambo is Free Software released under the GNU/GPL License.
spacer