City of Oakland plans for pot tax revenues

Oakland is facing a $42 million budget gap, and the way they want to plug it is by taxing cannabis.

Local governments in California and other Western states have tried to clamp down on medical marijuana, but Oakland has taken a different approach. If you can't beat 'em, tax 'em.

After becoming the first U.S. city to impose a special tax on medical marijuana dispensaries, Oakland soon could become the first to sanction and tax commercial pot growing operations. Selling and growing marijuana remain illegal under federal law.

Two City Council members are preparing legislation, expected to be introduced next month, that would allow at least three industrial-scale growing operations.

One of the authors, Councilman Larry Reid, said the proposal is more of an effort to bring in money than an endorsement of legalizing marijuana use _ although the council has unanimously supported that, too.

The city is facing a $42 million budget shortfall. The tax voters approved last summer on the four medical marijuana clubs allowed under Oakland law is expected to contribute $1 million to its coffers in the first year, Reid said. A tax on growers' sales to the clubs could bring in substantially more, he said.

www.realclearpolitics.com...

[edit on 29-5-2010 by PatesHatriots]

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[edit on 5/29/2010 by semperfortis]

So does that mean if you live in Oakland you can mention pot it on ATS and not get banned?



I think its about time the local government started trying to take care of business. The drug war is stupid, and never ending. ( just like the war on terror)
Maybe if it was legal, there wouldn't be so much death in the border towns.


So, I wonder how this will work if it is approved since it is still illegal federally?

Its step in the right direction.

The government should legalise all drugs, make themselves the sole provider, make the drugs clean and chemical free, and establish a license to buy them.

Public wealth could be created on a large scale, and at the same time, drastically reduce crime and criminals.

Win Win.

And thus the first REAL strike against the War on Drugs is struck. People start to see the value of a taxed substance like this and they will start thinking. It's about time.

Crazy.

I didn't think I would see this in my lifetime even. That John Titor is full of * man. Although I think "he" mentioned full legalization would not happen, not that I have brushed up on my Titor homework lately.

Hopefully I will get the first golden ticket to take the tour.

I have absolutely no idea what the incentive is to become legal for growers. As we've seen before you're playing with several different authorities and agencies. Local, State, Federal and if you're big enough any range of alphabet agencies are going to want to nail you. We just saw recently Federal Authorities unlawfully taking Medical Marijuana petitions in Washington State. I personally if I was involved in all this would much rather stay underground, keep my name off any paperwork, and keep the government out of my pocket. However this is a step in the right direction in the most bureaucratic way possible.

I do not see how this will change the war on drugs. Wont they still be looking for people that are using and in possession of drugs they have not payed taxes on?