Tax Us: Oakland Voters Approve Medical Marijuana Dispensary Tax -- Dispensaries Supported It

Drug War Chronicle Voters in Oakland, California, approved by a wide margin a measure to tax medical marijuana sold at the city's four dispensaries. The measure is the first in the country to impose a special tax on medical marijuana. The special tax was supported by the city's medical marijuana community, led by Oaksterdam University head and Coffeeshop Blue Sky owner Richard Lee. Lee and other supporters, including city council members, said the dispensaries wanted to do their part to help the city during economic hard times. The all mail-in vote took place during the one-month period beginning June 22, and the votes were being counted Tuesday night. According to the Alameda County Registrar of Voters, as of 8:00pm Tuesday, the ballot measure, known as Measure F, was winning with 79.9% of the vote. The measure creates a special business tax rate on dispensaries of $18 for every $1,000 in gross sales and is expected to generate hundreds of thousands of dollars a year for the city. Currently, the dispensaries are paying the same business tax rate as any other retail business in the city, $1.20 per $1,000. The measure will take effect on January 1. The measure was part of a package of revenue measures before Oakland voters. All passed, but none by as large a margin as Measure F. That's just the latest sign of acceptance of marijuana in a very pot-friendly city. In 2004, voters there approved a measure requiring police to make arresting adults for small-time pot offenses their lowest priority.