- 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

Getting out of debt

Everyone hates debt. Get out of it.

View Course »

Building Credit from Scratch

Start building credit...now.

View Course »

TurboTax Articles

Ways To Increase Your Tax Refund You Never Thought About

Laying the groundwork for a tax refund requires some simple tax planning, a little research and some forethought. Reviewing your tax status, consulting your spouse when filling out your W-4s and taking advantage of several tax credits can help you increase your tax refund. TurboTax also can help decide which credits can get you the biggest refund.

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.

8 Things You Think Are Tax Deductible That Aren't

There?s a fine line between looking to save money on your taxes and taking deductions that will raise eyebrows at the Internal Revenue Service. Some taxpayers are tripped up by expenses that they assume are tax deductions, but don?t qualify under IRS guidelines. Here are a dozen items that can lead to unpleasant surprises in case of an audit.

9 Things You Didn't Know Were Tax Deductions

Few realizations are more painful than realizing that you forgot to include a tax deduction that would have lowered your tax bill or increased your tax refund on your tax return. Here are some tax deductions that you shouldn't overlook.

Add a Comment

*0 / 3000 Character Maximum