Our View: Marijuana sales — a taxing problem - Opinion - MailTribune.com - Medford, OR

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2014-08-29

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0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation  |  Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Home News Latest Stories Emergency Services City officials take Ice Bucket Challenge City could foreclose on abandoned houses Gold Hill mayor faces challenger; other races have one candidate each Medford man arrested on suspicion of dealing meth Crime, Courts and Emergency Services Emergency Services Medford man arrested on suspicion of dealing meth Medford man arrested after abandoning stolen vehicle on I-5 Wounded Klamath deputy has ties to Rogue Valley UPDATED: Arrests made in shooting of Klamath County deputy Politics and Elections Gold Hill mayor faces challenger; other races have one candidate each Medford proposes new rules for pawn shops to help nab thieves Lack of incumbents, pot issue draws 10 for Medford council races Council members in Gold Hill dodge voter recall Bill Pullman campaigns for Oregon GMO labeling law Education Medford charter school opens with many changes, including its name Superintendent welcomes staff to a new school year Safe haven: Art program provides a place for youth to express themselves Sacred Heart School gets new principal Medford School District considers gifted land for new school Environment Judge won't block release of water Ashland marchers won't give up on climate change message OR-7 could be recollared next month Deadly deer virus may be spreading Talent earns Bee City USA designation State news Nation - World Obituaries Ted E. 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NW Raw Kelly's Crepes Basil & Berries India Palace Tempo Videos Classifieds Jobs Autos Real Estate FEATURED   » Obituaries TV Listings Movie Listings Oregon Outdoors Oregon Healthy Living Magazines & Special Sections NEWS NOW   UPDATED: Arrests made in shooting of Klamath County deputy       ...       UPDATED: Northbound I-5 reopens after FedEx truck burns       ...       10 things to know for Thursday       ...       UPDATED: Arrests made in shooting of Klamath County deputy       ...       UPDATED: Northbound I-5 reopens after FedEx truck burns       ...       10 things to know for Thursday       ...           OUR VIEW Our View: Marijuana sales — a taxing problem MailTribune.com Writer Posted Aug. 22, 2014 @ 12:01 am Posted Aug. 22, 2014 @ 12:01 am »  Social News City governments are attempting to discourage medical marijuana dispensaries — and potentially retail outlets, too, should a legalization measure pass in November — by imposing taxes on both medical and recreational pot sales. So far, medical dispensaries are opening anyway, and taxing retail outlets ahead of time could result in unintended consequences. In any case, ordinances should be designed to tax medical marijuana at a lesser rate, if at all, out of consideration for seriously ill patients who rely on the drug. The Ashland City Council did the right thing Tuesday night, voting not to tax medical marijuana at all, while enacting a 10 percent on recreational marijuana should the legalization measure pass. One dispensary has reopened in that city, and two have obtained provisional licenses from the state. Central Point enacted a 10-percent tax, but set the rate at 5 percent for holders of medical marijuana cards. The city has no plans to lift a moratorium on dispensaries before it expires next May. In Gold Hill, where the City Council's decision to allow a single dispensary to open ignited a recall attempt against four council members, that city's 5 percent tax yielded $1,800 in revenue for the town in the first three weeks the dispensary operated. So-called "sin taxes" are a time-honored way for governments to raise money while discouraging an activity that some members of the public disapprove of. Liquor taxes are a prime example. This puts the government in the contradictory position of relying on income from an activity it supposedly wants to limit. That approach to the potential legalization of recreational marijuana is understandable. It is less so in the case of medical marijuana. Society is grappling with the regulation of a substance that has medical uses but is also a popular recreational drug. If it is medicine, it makes little sense to tax it, except to take advantage of patients who need a safe, reliable supply. Even states with general sales taxes usually exempt prescription medications. Cities that choose to tax recreational pot are betting that will grandfather them in and let them get around language in the legalization measure that bans local taxes. That will likely be a decision for the courts, but it's hardly a sure thing. What's more, taxing recreational pot too heavily could backfire. Washington state, where voters legalized marijuana, is discovering that strict regulations and high taxes have resulted in retail pot prices outstripping black market street rates. If one of the arguments for legalization is to eliminate the black market, that's not a very good way to go about it. Finally, it's at least a bit ironic that while some city leaders have expressed concern about granting business licenses to stores that sell a product in violation of federal law, they seem to have no problem cashing in on that same product's sales. MailTribune.com Writer Posted Aug. 22, 2014 @ 12:01 am » Comment or view comments   Reader Reaction »  STAY INFORMED   Email NewsLetter   Sign Up Today   Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Stay Informed   Email newsletter   Sign Up Today   Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2014 Local Media Group, Inc. 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