- Days left
ganjaVoting ends today in Oakland, Calif. on a measure to create a new business category, for the first time officially recognizing medical marijuana dispensaries as a business class of their own.

The measure would also impose a 1.8% business tax as a percentage of sales. Heretofore, these shops were licensed as general retail, paying 1.2%. If, as expected, this measure is approved by this mail-in only election, it would add an estimated $294,000 to the city coffers.

California dispensaries already collect a 7.25% state sales tax as well as local sales taxes.

Nonetheless, the state is considering full legalization, which is expected to increase sales tax revenue (due to increased sales) and allow it to add an excise tax like that added to alcohol sales. Bill AB 390, which would legalize pot, was introduced early this year. It would impose an additional $50 per ounce tax on weed in addition to the sales tax.

Proponents of legalization can be expected to use California's initiatives to push for nationwide legalization of weed. Many states struggling to balance their budgets could be tempted by the revenue pot-ential. Those states are also faced with the need to reduce prison populations to save money, and "chronic" offenders could well be among those set free.

Oakland is home to Oaksterdam, an area where marijuana laws are virtually unenforced. The name is an homage to the neighborhood of Hamsterdam in "The Wire," an area where drug sales were made unofficially legal on one short stretch of street by a police chief attempting to save West-side neighborhoods in Baltimore.

Increase your money and finance knowledge from home

Banking Services 101

Understand your bank's services, and how to get the most from them

View Course »

Intro to Retirement

Get started early planning for your long term future.

View Course »

TurboTax Articles

Top 6 Tax Tips for Sharing Economy Freelancers

It's never been easier to earn a few extra dollars: Whether you drive for a ride-share company like Uber, rent out a room through a rental service such as Airbnb, or work for a company like TaskRabbit that outsources small jobs, errands and tasks?being a freelancer in the sharing economy means you may have one or more micro-enterprises or small businesses going on. And, just as your full-time job does, these endeavors often result in tax obligations people often overlook.

Claiming Property Taxes on Your Tax Return

If you pay taxes on your personal property and owned real estate, they may be deductible from your federal income tax bill. Most state and local tax authorities calculate property taxes based on the value of the homes located within their areas, and some agencies also tax personal property. If you pay either type of property tax, claiming the tax deduction is a simple matter of itemizing your personal deductions on Schedule A of Form 1040.

Side-Giggers: Tax Tips for Side Jobs

Having a side gig can help you make ends meet or build your rainy day fund. Income from freelance work, running your own small business or working at a second job brings in extra income without requiring you to quit your day job. But, like your main source of income, a second job or side gig must be reported on Form 1040 at tax time.

Tax Aspects of Home Ownership: Selling a Home

Though most home-sale profit is now tax-free, there are still steps you can take to maximize the tax benefits of selling your home. Learn how to figure your gain, factoring in your basis, home improvements and more.

Add a Comment

*0 / 3000 Character Maximum