1. chillinwill
    A 25 percent excise tax on medical marijuana could potentially raise about $1.2 million dollars for the state, according to the Legislative Finance Committee’s fiscal impact report of Sen. John Sapien’s bill, SB 56. But in a response to that figure, the state’s Tax and Revenue Department says the tax could cause patients to turn to the black market.

    The analysis estimated a typical patient spends $6,256 annually on medical marijuana, and would pay about $1,564 in excise tax per year.

    There are 1,048 licensed patients, but 321 are licensed to grow their own medical marijuana at home.

    While the tax is on the production rather than the purchase of medical marijuana, the Tax and Revenue department pointed out in the report that the analysis assumes patients won’t purchase alternatives to medical marijuana if the price is raised. If the tax is passed on to the consumer, it could instead push more patients to grow at home, or purchase from the black market:

    … while there might not be a substitute for medical marijuana, there are substitute sources for medical marijuana where this new tax would not be applied. Most patients with the physical ability or resources available to grow their own medical marijuana may already do so; however, a price increase of 25 percent could push more of the non-growing patients to grow their own or to turn to the black market.

    Sen. Sapien told The Independent last week that its not a given that non-profit producers would pass the excise tax on to consumers, but a patient advocate Paul Culkin assumed that it would be.

    By Marjorie Childress
    February 1, 2010
    New Mexico Independent


  1. godlike1213
    If marijuana is legalized in cali this year do you think it is perscribed only or kind of like alchohol with a age requirment to buy OTC.
    I wonder if you can get perscribed alchohol like you could during prohibition somewhereXD It would be pointless but funny nonethesss:p

    I wouldent mind paying tax like they tax tobacco if it is legalized
  2. Terrapinzflyer
    ^^ marijuana is already "legal" in CA with a doctors recommendation. The legalization bills would made it "legal" for the general adult population. But there are serious issues with the proposed iniatives - turtle strongly recommends anyone in CA to carefully read and research what these laws would actually do. Turtle does not know anyone who will be voting for them.

    As to the case above in new mexico- 25% tax, by their own figures costing patients in excess of an additional $100 a month is ridiculous. (although the $521/per month figure for the mj itself seems on the high side). It would be interesting to know if the tax would simply be going in to the general state coffers or if it would be used to benefit patients in any way.
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