Voters in Oakland, California, will decide this month whether to create a new business tax aimed at the city's four medical marijuana dispensaries. Mailed ballots went out this week and must be returned to the city registrar's office by July 21 to be counted.The tax measure, known as Measure F, would levy a business tax rate of $18 per every $1,000 in gross sales at dispensaries. Under the standard retail business tax rate, the dispensaries now pay $1.20 per every $1,000, meaning the new rate would be a whopping 1500% increase.
But that's okay with Oakland dispensary operators. In fact, it was the dispensaries that approached Oakland City Councilmembers Rebecca Kaplan and Nancy Nadel about instituting a new tax.
Operators say they are willing to pay their fair share to help the city deal with pressing financial problems. The proposed tax should bring in $315,000 in tax revenues for the city in 2010, up substantially from the $21,000 generated under the retail tax rate last year.
It is also an effort to further legitimize medical marijuana in a city that is already pretty pot-friendly. "Criminals don't pay taxes," said James Anthony, an attorney for Harborside Health Center, one of the dispensaries. "Law-abiding citizens do. We are nothing if not law-abiding citizens," he told the Oakland Tribune.
Councilmember Kaplan, a prominent medical marijuana supporter, also argued in favor of the measure. "It is important that there be regulation and that there be a permit process and that there be taxation," Kaplan said. "Both because the city needs the revenue and to be sure that we weed out the bad actors."
The ballot measure needs a simple majority to pass. It is also supported by the broad-based Yes 4 Oakland coalition.