Oakland Voters Approve Marijuana Sales Tax Rise

by Leroy Baker, Tax-News.com, New York

03 August 2009

In what is being viewed by advocates for the legalization of cannabis as a landmark victory, voters in Oakland recently approved a substantial sales tax increase for medical marijuana sold by four of the city's dispensaries, in order to plug a budget gap.

The 1.8% tax on medical marijuana sales, proposed by Councilor Rebecca Kaplan, was supported by 80% of those who voted in a special mail ballot. It is hoped that the measure will provide in the region of USD1.4bn in additional revenue, although critics have argued that the figures provided by the state authorities are based on flawed research.

In addition, opponents to the move have argued that the further legitimization of a drug which – while legal for medical usage in California for some time – is still illegal at the federal level is far from desirable.

However, given the significant budget crisis currently being faced by the California authorities, the more laid-back attitude taken by Oakland's voters must have come as something of a relief.

According to reports in the regional and national media, several other cities, including San Francisco and Los Angeles, are said to be considering the imposition of a similar levy, and several pieces of legislation which aim to wholly legalize cannabis use (subject to certain restrictions), such as The Tax, Regulate and Control Cannabis Act of 2010, have been put forward.

A proposed ballot measure filed with the California Attorney General's Office, in a separate pro-legalization push reported by the Associated Press, would allow the possession and cultivation of a certain amount of marijuana by those over the age of 21.

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