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Wednesday, February 13, 2008
A recently introduced bill
would protect California’s medical marijuana dispensaries from overwhelming tax
burdens that have resulted from a previously gray area in the law.
Senate Bill 1098, introduced
by California State Senator Carole Migden (D – San Francisco), would relieve
medical marijuana dispensaries of tax liability, interest, and penalties for
sales made prior to October 1, 2005.
The state Board of
Equalization, responsible for administering taxes in the state, ruled in 2005
that medical marijuana is subject to general sales tax. Before that ruling there
was no clear direction from the state on the subject.
Curtis Notsinneh of DPA’s
California Capital office said, “It’s not fair to hold dispensaries responsible
for sales tax dating back before the Board of Equalization ruling. That tax
liability would be financially crushing.”
SB 1098 is an improved
version of a bill from last year, SB 529, and would put into law a ruling by a
California Appellate Court. In the process of protecting dispensaries from tax
liability for sales prior to October 1, 2005, the bill would normalize medical
marijuana business practices with regard to tax policy.
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