- 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 Buy a Car

How to get the best deal and buy a car with confidence.

View Course »

Building Credit from Scratch

Start building credit...now.

View Course »

TurboTax Articles

How to Itemize Taxes When Claiming Dependents

Claiming dependents and itemizing deductions is an effective way to save money on your income taxes. Each dependent you claim allows you to reduce your taxable income by one exemption. Get a step-by-step overview on how to take advantage of itemizing your taxes when claiming dependents in this article on tax tips.

What Extra Tax Deductions Should I Make Sure To Take?

The federal government offers tax deductions and credits to reduce taxable income under certain circumstances. There are several that are often overlooked, including deductions for job hunting, caregiver expenses for dependents and children while you work, a credit to reduce taxes for moderate- to low-income earners and the premium tax credit associated with the Affordable Care Act. TurboTax can help determine if you qualify for these credits and deductions.

Know The Key Dates For Health Care Reform

"Open enrollment periods for the health insurance marketplace under the Affordable Care Act are limited" says Mac Schneider, a retired certified public accountant from Albion, Michigan. ?Avoiding tax penalties requires awareness of important dates that may vary year-to-year.? As well as key dates, there are time cycles and coverage gap allowances important to health insurance coverage under provisions of health care reform.

What Is Form 8941: Credit for Small Employer Health Insurance Premiums

Small business owners who subsidize the cost of employee health insurance premiums may be able to get some of that money back by claiming the credit for small employer health insurance premiums on their taxes. Some of the eligibility requirements, however, limit the number of people a business can employ and the average annual wages they earn. Qualifying as a small employer can reduce your tax bill by the amount of the credit you report on Form 8941.

Add a Comment

*0 / 3000 Character Maximum