“If you can’t beat ’em, tax ’em”

May 28, 2010

Oakland, California (location of Oaksterdam) is attempting to get more tax revenue from medical marijuana, this time focusing on growers:

After becoming the first U.S. city to impose a special tax on medical marijuana dispensaries, Oakland soon could become the first to sanction and tax commercial pot growing operations. Selling and growing marijuana remain illegal under federal law.

Two City Council members are preparing legislation, expected to be introduced next month, that would allow at least three industrial-scale growing operations.

One of the authors, Councilman Larry Reid, said the proposal is more of an effort to bring in money than an endorsement of legalizing marijuana use – although the council has unanimously supported that, too.

The city is facing a $42 million budget shortfall. The tax voters approved last summer on the four medical marijuana clubs allowed under Oakland law is expected to contribute $1 million to its coffers in the first year, Reid said. A tax on growers’ sales to the clubs could bring in substantially more, he said.

More marijuana taxation here.


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