ASA Rejects Unfair Taxes - No on SBX6 16 (CA)

June 19, 2010 | Don Duncan

Update June 23 - Sen. Calderon has withdrawn SBX6 16. Thanks to everyone who helped get this done! California Senator Ron Calderon (D-Montebello) wants to add a new tax medical cannabis in California. If adopted, SBX6 16 would tax legal medicine at the same rate as tobacco – forty one percent! ASA opposes this unreasonable burden on legal patients, who already pay sales tax on their medicine. Medical cannabis is expensive and usually not covered by insurance. ASA is calling on Senator Calderon’s colleagues on the Senate Revenue and Taxation Committee to reject SBX6 16 at a hearing on Wednesday, June 23. ASA appreciates the state’s need for additional tax revenue during these tough economic times. A more reasonable approach would be to seek wider compliance with the Board of Equalization (BOE) ruling from October of 2005, which requires patients’ collectives and cooperatives to pay sales tax at the normal rate. This could bring large sums of money into state coffers without creating additional economic hardships for sick and dying Californians who lawfully use medical cannabis. (ASA opposes the application of sales tax to medical cannabis, but supports compliance with the BOE ruling until the law changes.) Research conducted by ASA shows that regulating medical cannabis is beneficial for communities, and revenue issues should be a part of a comprehensive regulatory strategy. However, SBX6 16 is a premature effort. Revenue issues must be addressed along with other crucial issues – (1) inconsistencies in local policies on sales of cannabis, (2) clarity on the scope and nature of conduct permitted under the law, (3) licensing and legal protection for cannabis growers, and (4) protection for patients’ civil rights. ASA is willing to work with lawmakers on sensible and comprehensive legislation in the future. Please join ASA in opposing SBX6 16 before Wednesday’s hearing. You can contact members of the Senate Revenue and Taxation Committee from the committee web page. Tell them to vote no on SBX6 16.