Pubdate: Fri, 22 May 2015
Source: Vancouver Sun (CN BC)
Copyright: 2015 Postmedia Network Inc.
Contact:  http://www.canada.com/vancouversun/
Details: http://www.mapinc.org/media/477
Page: B6

REGULATIONS FOR MARIJUANA SALES SHOULD INCLUDE TAXES

In the absence of federal leadership on the issue, B.C. municipalities
are lobbying for authority to regulate marijuana dispensaries. That is
not all they should be pushing for.

If marijuana is to be available for sale in B.C., as it is in
Vancouver, a system needs to be put in place to ensure sellers and
buyers pay taxes.

Because of the ad hoc nature of developments relating to pot sales
here, this crucial aspect of the enterprise appears to be falling
through the cracks.

Lower Mainland municipalities want a national debate on the pot
dispensaries, and recently submitted a resolution on the topic to the
Federation of Canadian Municipalities, holding a convention in June.

A coalition of 33 Vancouver-area governments that has endorsed the
resolution believes greater clarity is required on what regulations
would be appropriate.

At present, confusion prevails. Federal Health Minister Rona Ambrose
is calling on Vancouver area governments to shut down the dispensaries
even as the city schedules public hearings to solicit opinion on
proposed rules and as dozens of dispensaries continue to operate freely.

The city has proposed restricting where the pot outlets can open shop
- - not near schools and community centres - and a requirement for a
$30,000 licensing fee.

However, if the dispensaries are to be permitted to operate in
accordance with municipal regulatory requirements, what is the
justification for keeping them tax-exempt?

Such preferential treatment would be unjustifiable given that every
other business in the city must pay its taxes, and is required to
charge customers sales tax.

In Washington state, marijuana sellers pay a 25-per-cent excise tax to
the state's liquor control board. In addition, sellers submit to the
state's revenue department a business and occupation tax, based on
gross receipts, plus revenue collected in retail sales taxes.

It is true. Washington, along with Colorado, Oregon and Alaska, has
legalized marijuana for recreational use; whereas the federal
government in Canada, which bears responsibility for drug policy, has
not. Ottawa permits only medical marijuana sales by mail order.

If the dispensaries are going to operate in Canada, regardless of the
federal legal vacuum, and pot sales are going to take place, why
should the dispensaries get the bonus of tax-free status?

One of the main arguments used by proponents of legalization is the
benefit to governments of new tax revenues, money that potentially
could be used to advocate against drug consumption.

In Colorado, the state collected $44 million in such new taxes in
2014, the year marijuana legalization was implemented.

It is true it defies logic to tax illegal activity but the system
currently being contemplated - a regulatory framework for sale of an
illegal substance - equally defies logic.
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MAP posted-by: Matt