- 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

How to Avoid Financial Scams

Avoid getting duped by financial scams.

View Course »

Timing Your Spending

How to pay less by changing when you purchase.

View Course »

TurboTax Articles

Video: Who Qualifies for an Affordable Care Act Exemption (Obamacare)?

The Affordable Care Act requires all Americans to have health insurance or pay a tax penalty. But, who qualifies for an Affordable Care Act exemption? Find out more about who qualifies for an exemption from the Affordable Care Act tax penalty, how to claim an exemption on your tax return and how the Affordable Care Act may affect your taxes with this video from TurboTax.

Video: How to Claim the Affordable Care Act Premium Tax Credit (Obamacare)

The Affordable Care Act Premium Tax Credit is a new refundable tax credit that can lower your monthly health insurance premiums. If you qualify for the tax credit, you can claim the Premium Tax Credit throughout the year to lower your monthly health insurance premiums, or claim the credit with your tax return to either lower your overall tax bill or increase your tax refund.

Deducting Summer Camps and Daycare with the Child and Dependent Care Credit

If you paid a daycare center, babysitter, summer camp, or other care provider to care for a qualifying child under age 13 or a disabled dependent of any age, you may qualify for a tax credit of up to up to 35 percent of qualifying expenses of $3,000 for one child or dependent, or up to $6,000 for two or more children or dependents.

What Is Schedule H: Household Employment Taxes

If you hire people to do work around your house on a regular basis, they might be considered household employees. Being an employer comes with some responsibilities for paying and reporting employment taxes, which includes filing a Schedule H with your federal tax return. But even if you have household employees, filing Schedule H is required only if the total wages you pay them is more than certain threshold amounts specified by federal tax law.

Add a Comment

*0 / 3000 Character Maximum