Calif. Medical Marijuana Clubs Get Taxed November 3, 2005
News Summary
Medical-marijuana clubs in California may soon be taxed just like any other business in the state, the Santa Cruz Sentinel reported Oct. 27.The state Board of Equalization will allow the clubs to get a seller's permit and collect taxes, without having to say if their merchandise is legal to sell. State law allows the clubs to legally sell marijuana for medical use, but the drug remains illegal under federal law.
"We didn't want to inadvertently be in the position of putting medicinal marijuana dealers in a trouble spot," said board member Betty T. Yee.
More than two dozen clubs have registered with the board; others have not. "Most of us want to comply with the law and do all we should as a regular business," said Lisa Molyneux, who runs a medical-marijuana club.
However, the medical-marijuana group Americans for Safe Access opposed the board's action, saying the clubs should be exempt from taxation because they are health facilities.
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