Press Release: Oakland Voters Approve Taxing Cannabis Dispensaries

[Courtesy of DPA] FOR IMMEDIATE RELEASE: July 22, 2009 CONTACT: Laura Thomas at (415) 283-6366 or Tommy McDonald at (510) 229-5215 Oakland Voters Approve Taxing Cannabis Dispensaries; Measure Expected to Produce $300,000 Annual Revenue for Essential Services DPA Congratulates Oakland Voters on Passing Medical Cannabis Revenue Measure, Expects other Cities to Follow Efforts to tax cannabis to generate revenue for California’s sagging coffers received a boost last night as Oakland voters approved Measure F by 80 percent Measure F adds a 1.8 percent gross receipts tax to medical cannabis dispensaries, producing nearly $300,000 in annual revenue. Early returns showed Measure F passing by the largest margin of all of the revenue measures on Tuesday’s ballot. The tax will go into effect in January 2010. “Oakland voters know a good idea when they see one,” said Laura Thomas, deputy state director for the Drug Policy Alliance. “Once again, Oakland voters are ahead of the curve and we hope the rest of the state will follow their lead. The politicians need to listen to the wisdom of the voters.” Medical cannabis dispensaries in Los Angeles and other communities also are pushing for new taxes, and should be recognized as a revenue source. Dispensaries already contribute payroll taxes, sales taxes, and licensing and other fees to government coffers. Marijuana sales have the potential to raise millions for California if regulated and taxed. Assemblyman Tom Ammiano introduced a bill (AB 390) where California would tax and regulate marijuana like alcohol. Recent estimates from the state Board of Equalization showed a possible $1.4 billion annual revenue stream. “Taxing medical marijuana is a no brainer and fiscally makes sense for a cash-strapped state like California. But this is the tip of the iceberg,” added Thomas. “Once Californians see the benefits of taxing and regulating medical marijuana in Oakland, the next logical step is to tax and regulate all marijuana revenue across the state.”