California: Oakland Voters Approve Nation’s First Marijuana Business Tax

By chillinwill · Jul 22, 2009 · ·
  1. chillinwill
    Oakland voters on Tuesday overwhelmingly approved the nation’s first ever business tax on retail marijuana sales.

    According to preliminary election results, approximately 80 percent of Oakland voters approved the new tax (which appeared on the ballot as Measure F), which imposes an additional tax for “cannabis businesses” of $18 for every $1,000 of gross receipts beginning January 1, 2010.

    Presently, Oakland’s medical cannabis dispensaries are taxed at the same rate as other retail sales businesses ($60 per year for the $50,000 of gross receipts, plus $1.20 for each additional $100,000).

    Four dispensaries are licensed by the Oakland City Council to sell and dispense medical marijuana.

    According to a financial analysis by the Oakland City Auditor, Oakland’s new cannabis business tax will generate an estimated $300,000 in additional annual tax revenue.

    Representatives from the Oakland City Council, the California Nurses Association, and the dispensary community publicly advocated for the new tax, which had no formal opposition.

    “The passage of this first-in-the-nation tax further legitimizes cannabis-based enterprises in Oakland and elsewhere,” NORML Executive Director Allen St. Pierre said. “These outlets are contributing to the health and welfare of their local communities, both socially and now economically. At a time when many municipalities are strapped for tax revenues and cutting public services it is likely that public officials in other cities will begin considering similar proposals.”

    By: Paul Armentano
    July 22, 2009
    NORML Blog’s-first-marijuana-business-tax/

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  1. Alfa
    Oakland, California, passes landmark marijuana tax

    OAKLAND, California (CNN) -- Oakland's bid to become the first U.S. city to tax proceeds on medical marijuana passed Tuesday by a landslide vote.

    [imgl=white][/imgl]About 80 percent of voters chose to impose the tax on Oakland's medical marijuana facilities, according to the Alameda County Registrar of Voters.

    Some celebrated the news at Oaksterdam University by hand-rolling large marijuana cigarettes or stuffing cannabis into pipes. The school trains students for work in the medical marijuana industry.

    "It is important because the city of Oakland is facing a massive deficit like many jurisdictions in California," said Steve DeAngelo, a leader of one of the city's cannabis clubs. "And we decided to step up to the plate and make a contribution to the city in a time of need."

    DeAngelo, one of the people who led the effort to get the tax approved, said his business will now have to pay more than $350,000 from the new tax next year.

    Oakland's City Council was also behind the move.

    "Given that the medical cannabis dispensaries are something that was legalized in California, why not have revenue from it?" said councilwoman Rebecca Kaplan.

    There was no formal opposition to the effort, but some drug fighters say the tax sends the wrong message.

    "The taxation of a federally unlawful drug is just not something that the community should accept," said Paul Chabot of the Coalition for a Drug Free California. "With the state in dire straits in finances and the country looking for ways to pay down debt, looking at illegal drugs is the absolute wrong thing to do."

    The measure, passed in special mail-in election Tuesday, imposes a 1.8 percent gross receipts tax on the four licensed medical cannabis dispensaries in Oakland.

    These facilities would have to pay about $18 in taxes for every 1,000 in marijuana sales.


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  2. old hippie 56
    Re: Oakland, California, passes landmark marijuana tax

    Other avenues of revenue are not working for the state, would the people that belong to the Coalition for a Drug Free California rather see basic services curtailed or remain the same? California was the promise land, not no more.
    Pulled a little tidbit off the wire:
    Cities and counties, meanwhile, have said they might to stop the state from taking some $4 billion in local tax money. Local governments throughout the state, hit by declining property and sales taxes, already are laying off law enforcement officers, firefighters and other employees, while trimming park maintenance, library, trash and other services.

    Source: AP
  3. fnord
    Re: Oakland, California, passes landmark marijuana tax

    Sweet! lets hope other states hop onthe band wagon. With the failing economy this is a great avenue to pursue to accomplish re-legalization.
  4. runitsthepolice
    Re: Oakland, California, passes landmark marijuana tax


    Nice! Things are changing, slowly.
  5. thebige
    Re: Oakland, California, passes landmark marijuana tax

    Cities and counties,....... already are laying off law enforcement officers, firefighters and other employees, while trimming park maintenance, library, trash and other services.

    Love how they always say things like this :laugh: to frighten the elderly voting population
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