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Officials Tell Medical Marijuana Dealers To Pay Up
04.07.07|KCRA

The taxman is going after the medical marijuana man.

The state Board of Equalization is telling the estimated 150 to 200 medical marijuana retailers in California to pay sales taxes on pot.

The 1996 initiative that decriminalized use of marijuana for medical purposes did not address how state tax officials should deal with medical marijuana sales. The sales weren't covered before Proposition 215 because they were illegal.

The board ultimately decided that medical marijuana was not exempt from sales taxes because it was not dispensed by a pharmacist or approved by the Food and Drug Administration as a medication.

The board's action has divided the medical marijuana community, with some sellers saying it helps legitimize their businesses. But others worry that any tax information they report will be used against them by the federal government, which still bars use of medical marijuana.

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