Thursday, December 1, 2011

Taxing Medical Marijuana

Are we surprised that Los Angeles has the highest concentration of medical marijauna shops in the nation?

It hit me when I met a couple who had moved here from Sweden. Pot is cheaper here, and better, they said. They pulled out their cards. "We came on student visas," said one. Really?

Now, with Measure M in place, the City requires dispensaries to pay a 5% business tax on gross receipts. With that kind of income, what the hell are they thinking when they are talking about a ban on pot shops?

Unless someone can come up with another plan to rake in that kind of money, that would be plain stupid. Tax marijauna shops. Leave the rest of us alone.

Prohibitive taxing on items perceived to be "bad" or "luxury" items is a favorite of legislators. Look at the tax on cigarettes and gasoline. It works. We pay. Why not pot shops?

The LA Times reports that the official number of pot shops is at 372. They spoke with assistant district attorney Asha Greenberg, who believes the number to be closer to 500. There have been several vain attempts to pin down these dispensaries, but with such a popular product selling itself, its like trying to hold on to light.

LA Times map of dispensaries

At the end of 2009, the LA Weekly made an exhaustive count of the shops operating in Los Angeles. Their count was 545. The numbers wax and wane with public opinion and new regulations.

Even illegal pot shops have to pay these taxes. That sounds like a win-win for me!