Sen. Migden Sponsors Bill to Relieve Dispensaries of Back Sales Taxes (SB 529)

Sen. Migden Sponsors Bill to Relieve Dispensaries of Back Sales Taxes (SB 529)
Cal NORML Release June 15, 2007

SACRAMENTO - State Sen. Carole Migden (D-SF) has introduced a
bill, SB 529, that would relieve medical cannabis dispensaries from
obligations for back sales taxes provided they promptly comply and
register with the Board of Equalization.
California NORML supports SB 529 on the grounds that it would
encourage marijuana to be treated like other legal products. Under
Cal law, all herbal medicines not sold in pharmacies by prescription
are subject to sales tax. Last February, the Board of Equalization
sent a a special notice to California medical cannabis dispensaries,
advising them that they were liable for sales taxes. Many
dispensaries have complied, in some cases paying $100,000s in taxes
per year. Many others have yet to do so, some out of fear of
exposing themselves to obligations for back taxes. Sen. Migden's
bill would eliminate this threat for those dispensaries that promptly
comply with the law.

California NORML estimates the total potential sales tax revenues
from medical cannabis at $70 - $120 million per year, with a total
statewide customer base of some 150,000 - 350,000 patients and a
gross retail market of $800 million to $2 billion per year.
SB 529 is in the Assembly, which adopted it as a gut-and-amend
replacement for a recycling measure already passed by the Senate.
The bill is expected to be sent to the Assembly Committe on Revenue
and Taxation for hearings in early July.
Text of SB 529:
http://info.sen.ca.gov/pub/07-08/bill/sen/sb_0501-0550/sb_529_bill_20070614_amended_asm_v97.html


Legislative Status:
http://info.sen.ca.gov/pub/07-08/bill/sen/sb_0501-0550/sb_529_bill_20070614_status.html
Contact: Dale Gieringer (415) 563-5858.

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Dale Gieringer / California NORML (415) 563-5858 // canorml [at] igc.org
2215-R Market St. #278, San Francisco CA 94114
Come to NORML's 36th Annual National Conference in LA
'Cannabis, Creativity and Commerce'
Los Angeles/October 12-13, 2007
Registration: http://www.norml.org / 888-67-NORML