California Collects $100 Million In Marijuana Sales Taxes

[Slybacon]

California Collects $100 Million In Marijuana Sales Taxes

By Steve Elliott in Dispensaries, News

Wednesday, May. 5 2010 @ 8:43PM

http://www.tokeofthetown.com/2010/05/calif...juana_sales.php

California is collecting between $50 million and $100 million a year in sales taxes from medical marijuana, according to the California Board of Equalization, confirming an estimate previously published in an economic analysis by California NORML.

The numbers were also independently confirmed by patient advocacy group Americans for Safe Access.

The state's retail market for medical marijuana has surpassed $1 billion per year, according to California NORML estimates, with a total adult use market of $6 billion.

An initiative to legalize and tax cannabis for adult use will be on this November's ballot in the Golden State.

Marijuana opponents, led by Los Angeles County District Attorney Steve Cooley, have tried to choke off the state's lucrative medical marijuana market by claiming that all marijuana sales are illegal.

The stand stands to lose tens of millions of dollars in sales tax revenues and millions more in enforcement costs if Southern California's dispensaries are closed, according to Cal NORML Director Dale Gieringer.

"Marijuana prohibition is a losing proposition for California's taxpayers," Gieringer said. "On one hand it costs the state to arrest, prosecute, and imprison marijuana offenders, and on the other it deprives the state of valuable tax revenues."

Adult use legalization could net the state some $1.4 billion in revenues, according to California's Legislative Analyst's Office, or more than $1.2 billion by California NORML's estimate.

[Bread Filter]

L.A. orders 439 medical marijuana dispensaries to close

Los Angeles city prosecutors began notifying 439 medical marijuana dispensaries Tuesday that they must shut down by June 7, when the city's ordinance to regulate the stores takes effect. It's the first step in what could be a lengthy and expensive legal battle to regain control over pot sales.

The letters, which were sent to both dispensary operators and property owners, warn that violations of the city's laws are a misdemeanor and could lead to six months in jail and a $1,000 fine. Collectives that stay open after the deadline could also face civil penalties of $2,500 a day.

"We're hopeful that the fact that we've given them more than 30 days to comply that a significant number of them will cease operating," said Asha Greenberg, the assistant city attorney who has handled most of the efforts to close dispensaries.

Los Angeles became the epicenter of the state's dispensary boom last year, following the Obama administration's announcement that it would not prosecute medical marijuana stores that adhered to state law. Although the city had a moratorium on new dispensaries, it failed to enforce the ban and hundreds opened with no oversight, triggering complaints from neighborhood activists.

The letters were welcomed by city officials and activists as a sign that the contentious issue, which was first considered by the City Council five years ago, is nearing a resolution.

"We've arrived. It's like being on a journey and saying, 'Are we there yet? Are we there yet?' " said Councilman Ed Reyes, who oversaw the laborious process that led to an ordinance after two years of debate. "It feels good that we have finally reached this threshold."

Michael Larsen, the incoming president of the Eagle Rock Neighborhood Council, was the most tenacious spokesman for residents worried about unregulated dispensaries. "There's actually something happening based on an ordinance that we worked very hard to get into place. On that level, I am relieved," he said. "The truth about the actual enforcement, that will just be a big question mark."

Under the new ordinance, only dispensaries that registered with the city after the council adopted the moratorium in 2007 will be allowed to operate. City officials estimate that more than 130 of the original 186 registered dispensaries are still in business.

The Los Angeles Police Department cased the city to try to find every dispensary. Estimates from city officials and medical marijuana activists had ranged as high as 1,000. But Capt. Kevin McCarthy, who heads the LAPD's Gangs and Narcotics Division, said, "We came up with less than 600, which is good."

Greenberg said the city attorney's office will send out more letters if residents point out additional dispensaries. "We're making our best efforts, and we're using information from really our eyes and ears out there, which is the community," she said.

The city's enforcement efforts, however, could be stymied by court cases.

Two related lawsuits filed by dispensaries challenge the City Council's decision to close stores that did not register under the moratorium, which a local judge ruled was illegally extended. "We're looking for the court to just acknowledge that our clients are unlawfully discriminated against," said David Welch, a lawyer who represents 36 dispensaries in the lawsuit.

Eric Shevin, another lawyer with experience in marijuana issues, is preparing to sue on behalf of patients. "We are putting together a very comprehensive lawsuit to strike down L.A.'s ordinance," he said, arguing that the law imposes unreasonable restrictions on patient access to medicine. "There is really nothing that allows medical marijuana patients to be treated differently than, say, Vicodin patients."

Los Angeles has tried twice to persuade dispensaries to shut down, with mixed results. City prosecutors sent letters last year ordering 53 stores to close after the City Council denied their applications to operate despite the ban, and 28 did so. Earlier this year, letters were sent to the landlords of 21 dispensaries targeted by LAPD undercover operations, and six stores closed.

McCarthy said he hopes most dispensaries will close voluntarily. He believes many operators are conscientious, but notes that others are not. "I don't know what percentage of them are knuckleheads, and because the money is pretty good, we're not going to get 100%" compliance, he said.

Noting that medical marijuana is not the narcotics division's highest priority, he said it could take some time to determine which dispensaries remained open beyond the deadline. He said his officers would focus on the biggest nuisances: "Obviously, the ones that the community is screaming about are the ones we are going to go to first."

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LA Times

[FancyPants]

I wonder if the city deliberately let those dispensaries without oversight open and operate for a little while, just so they could come back and claim licentiousness of the cannabis commerce.

[Sonny Jim]

Come on money hungry aussie gov!!!

Take note, make some dosh and stop giving my mates fines, criminal records and custodial sentences for cannabis related "offenses".

There are so my example but I remember a mate of mine got a record for possession of a few cones worth of pot (not even a tenna). It was about 15 years ago. The police even apologized to him but said they simple had to charge him. Apparently his hysterical mother called the cops and insisted that he be charged. This caused major hassles when he had to move to the U.S. for work. He took the risk and didn't declare his criminal record and managed to make it through the working visa process. He was lucky, his life would have turned out very differently if he had missed out on that job, for the worse IMHO.

My friend and many others did not and do not deserve such harsh repercussions. Its is simply unjust IMO.

Rant over

[vual]

Now Australia just needs to catch on, what a perfect way to beat a recession, stupid if they don't honestly.

[Chiral]

Good luck with that...asking Mr Rudd for that is like Oliver asking for more.

[Sonny Jim]

^^^

I think Australia will get there....eventually