Medical Marijuana Can be Taxed, says Colorado Attorney General Suthers


November 16, 2009 – As countless medical-marijuana dispensaries proliferate throughout the state, Colorado Attorney General John Suthers on Monday said “yes” to the question of taxing pot.

“Colorado law is clear: Medical marijuana, in most instances, should be subject to state and local sales taxes,” Suthers said. “This formal opinion should help clear up many of the uncertainties surrounding the taxation of medical marijuana.”

Suthers issued the opinion amid confusion about whether medical pot can be taxed since the drug is still illegal under federal law, but permitted for legal medical use in the state of Colorado under a voter-approved constitutional provision, Amendment 20.

But Suthers added that many other questions surrounding medical marijuana and Amendment 20 will have to be resolved by the courts or Colorado legislators, who are considering new laws to rein in the wildly growing cottage industry.

The U.S. Department of Justice’s recent announcement that users and providers of medical marijuana won’t be prosecuted if they comply with state law has kindled interest in the drug as a business opportunity.

In Colorado, where voters approved Amendment 20 in 2000, the Justice Department’s announcement has fired up interest in medical marijuana dispensaries — establishments that cultivate and distribute marijuana for patients with certain medical conditions.

But the relaxed stance from the feds left some uncertainty about whether dispensaries can be taxed for selling their product.

Denver City Councilman Charlie Brown wants to subject dispensaries to a 3.62 percent sales tax — providing some much needed dollars for the city. But some law enforcement officers questioned the legality of collecting tax on a substance that is still considered illegal under federal law.

Although prescription drugs are exempt from taxation under Colorado law, Suthers noted that because medical marijuana is not a drug that is regulated by the Food and Drug Administration, it isn’t prescribed. Therefore, doesn’t fall under the exemption. by Bob Mook. Source.


One response to “Medical Marijuana Can be Taxed, says Colorado Attorney General Suthers”

  1. it’s funny how local politicians use the fact that sense marajuana is illegal under federal law lets taxed the hell out of it. tax it already, not tax it to hell and back but sure tax it smokers dont mind being taxed right? another thing if you read the federal statute on mj it recoginizes states jurisdiction and federal are two seperate entities and that the two maynot agree. it’s up to the people of that state plain and simple.

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