Drug Law

Marijuana Taxes Coming to California

| by NORML

By Paul Armentano

Despite last week’s defeat of Proposition 19 at the polls, new taxes on marijuana are coming to California.

As I write today in High Times online, California voters on election day by wide margins endorsed citywide medical marijuana tax ordinances in

Albany, Berkeley, La Puente, Oakland, Rancho Cordova, Richmond, Sacramento, San Jose, and Stockton. You can read the full details of each of these tax measures, as well as Los Angeles’ latest medi-pot tax plan, here.

While the bulk of these new tax plans impose fees on the dispensaries themselves — fees that will no doubt indirectly be passed on to the consumer via higher retail prices for cannabis — at least one plan (Rancho Cordova’s Measure O) seeks to impact patients directly by instituting local fees on personal home grows.

While it is possible (read: likely) that this exorbitant fee will be eventually struck down by the courts as an undue infringement upon patients’ rights under Prop. 215, it could be months or years before such a clarification by the courts is made.

Patient advocacy groups like Americans For Safe Access oppose the implementation of such medi-tax laws, noting that they could unduly raise the already inflated black market price of medical cannabis, lead to fewer dispensaries, and ultimately limit patients’ access. Nonetheless, it is hardly surprising to see a majority of Californians, at a time of record budget deficits, voting to impose additional taxes upon a minority subset of their community.

In short, the success of these tax measures at the ballot box is yet further evidence that with or without Prop. 19, more and more city governments — rightly or wrongly — are going to be looking at new ways to raise revenue from California’s burgeoning cannabis industry and its consumers. Industry insiders and those they represent, patients especially, would be best advised to begin playing an active role in their local politics, or else risk suffering the consequences of unreasonable taxation without representation.

You can read my full thoughts on this developing issue, and comment on it, by clicking here: Like It Or Not, Pot Taxes Are Coming to California.