Sunday, January 20, 2008

Ukiah Journal: Medical marijuana sales tax may end

By ROB BURGESS The Daily Journal

Article Last Updated: 01/19/2008 10:57:28 AM PST


Medical marijuana dispensaries in California, including the two that

currently operate in Mendocino County, may soon be exempt from state

sales tax, said a representative from the California State Board of



The regulations will soon reflect the change that when marijuana is

prescribed by a physician it is determined to be a medicine, said

Sarah, the representative, who refused to reveal her surname.


In order to be exempt from sales tax, the business must conform to

Regulation 1591, which states in part that the item must qualify as a

medicine, said the representative.


"Regulation 1591 defines a medicine, in part, as any substance or

preparation intended for use by external or internal application to

the human body in the diagnosis, cure, mitigation, treatment, or

prevention of disease and which is commonly recognized as a substance

or preparation intended for that use," stated a special notice

released by the board titled "Information on Sales Tax and

Registration for Medical Marijuana Sellers."


The change will be a reversal from the board's previous position.


In February 2007, the board sent out a notice to dispensaries, urging

them to obtain a seller's permit like any other retailer.


There are currently two dispensaries operating in the county: Herban

Legend in Fort Bragg and Reflections of Avalon in Ukiah, which opened

last month on South State Street just outside of city limits.


A third dispensary, Mendo Remedies in Laytonville, was

open until last month, when it closed its doors for good.


Paula Deeter is the owner of Herban Legend in Fort Bragg. Deeter said

she has always adhered to federal tax laws.


"I wish they would make up their minds," she said. "We were unclear at

first if it was a taxable item. We've always paid federal income tax."


On April 20, 1996, the U.S. Food and Drug Administration drafted a

news release that declared that smoked marijuana had no medicinal



"A growing number of states have passed voter referenda (or

legislative actions) making smoked marijuana available for a variety

of medical conditions upon a doctor's recommendation," the memo

stated. "These measures are inconsistent with efforts to ensure that

medications undergo the rigorous scientific scrutiny of the FDA

approval process."


Rob Burgess can be reached at udjrb -at-


R.A. "Bob" Ames    +1-916-991-0585

Employment Status: Available.  Open Source Support.

Desktop Support, Internet Servers, Training,

Telephony, Network Integration, Anti-Spam Webmail.


Respect your body. Focus your mind. Love your heart. Support and

cooperate with anyone

who wants to do the same. - Laura Huxley

No comments: