Pubdate: Thu, 14 Jul 2016
Source: Tribune, The (San Luis Obispo, CA)
Copyright: 2016 The Tribune
Author: Kathleen Howell


I don't understand why medical marijuana is taxable.

Other medicines are not taxable, so why is marijuana? According to 
the MarketWatch blog, "The case arose after the board audited 
Berkeley Patients Group Inc. in Northern California. The marijuana 
dispensary argued that the $51 million of marijuana it sold between 
July 1, 2004, and June 30, 2007, should be exempt from sales tax. The 
board disagreed because state tax code doesn't have a specific 
exemption for the marijuana, and said the dispensary owes more than 
$6.4 million in back taxes and interest."

Do all other medicines have a specific exemption? According to the 
California Tax Service Center, items exempt from sales and use tax 
includes sales of prescription medicine and certain medical devices. 
Medical marijuana requires a prescription. Therefore, by definition, 
it is a medicine. I don't get it.

Can you explain the reasoning behind taxing medical marijuana? It 
looks like discrimination to me. I'm fine with taxing recreational 
marijuana but not medical marijuana.

Kathleen Howell, Los Osos
- ---
MAP posted-by: Jay Bergstrom