In California, there are very few regulations that pertain to how medical marijuana is taxed during its growth or sale. Many counties and cities have banned the growth and sale of medical marijuana. Although legislators and medical marijuana supporters believe the tax revenues generated by its sale could be in the millions of dollars, it is often being left up to the voters as to whether marijuana based products will be allowed to be sold in certain areas.
Pot dispensaries have been required to pay taxes almost since medical marijuana was legalized two decades ago. The problem arises from the fact that the dispensaries are not closely monitored. This leaves many people to believe that they may be under-reporting their sales or, in some cases, not reporting them at all.
Authorization for County Taxes
Many communities, including Salinas and San Bernardino, are willing to allow medicinal marijuana to be sold as long as it is taxed. Taxes ranging between 5 and 15% have been suggested in most of the communities, but many taxpayers claim that medicines, like foods, cannot be taxed. If marijuana is to be used for medicinal purposes, it should fall into the same category as other medicines.
Leaving It Up to the Voters
Throughout California, many of the counties leave it up to the voters as to whether or not marijuana should be sold legally in their communities. When the counties are given the go ahead, each one realized early on the tax revenue generated by marijuana could be a financial lifesaver. Because tax regulations are so few, many counties and communities are taking it upon themselves to tax the products according to the community’s financial needs.
Ray Boroumand is the Office Manager of 4th Street Medical, a leading Orange County medical marijuana evaluation clinic. An advocate for medical marijuana, Ray believes in making the process as simple and easy for patients as possible through quick and convenient verification. At 4th Street Medical, he stresses convenience, affordability and transparency 100% of the time.