MMJ Advocates Call on Cal. Board of Equalization
 for Representation  with Taxation

 

       SACRAMENTO, March 18th, 2008.   Medical marijuana advocates appealed to  the state Board of Equalization to recognize their contribution to  California's sales taxes revenues and stand up for their right to  "taxation with representation."  The Board heard testimony from California NORML, ASA, and half a dozen dispensary owners concerned about  harassment by DEA despite paying sales taxes to the BOE.

        Speaking for ASA, Rebecca Saltzman reminded the Board that  California's dispensaries are generating some $100 million in sales  tax revenues, but are nonetheless being threatened with raids, arrest  and asset seizure by the DEA.  She asked the Board to stand up for  the dispensaries  and urge the Governor to do likewise.

       Cal NORML coordinator Dale Gieringer  testified that the total  retail market for medical cannabis is around $870 million to  $2  billion per year in California, enough to generate $70 to $160  million in sales taxes, according to a report by Oakland's Measure Z  marijuana oversight committee.  He  noted that DEA raids have robbed the state of millions in dollars of  sales tax revenues,  and that the DEA had even gone so far as to  confiscate sales tax payment checks in the process of their transfer  to the BOE.

      Lisa Sawoya, director of  Hollywood Compassionate Care in LA,  testified that  she had  begun paying sales taxes in 2006   and had  voluntarily sent the board six months' back taxes, but was  nonetheless subsequently raided and shut down by the DEA.

      Dona Frank of Organic Cannabis Foundation in Sonoma Co. testified  that her group had paid $500 K in sales taxes in 2007, and would  continue to do so, but had nonetheless been forced to move on account  of DEA landlord letters.  She called on the board to "stand up"  against the DEA's actions.

     Lisa Molyneux of Greenway Compassionate Relief in Santa Cruz said  she was providing workers with employment, benefits and health  insurance, in addition to paying  taxes,  but that DEA raids were  putting these revenues at risks.

      Rebeccca De Keuster of Berkeley Patients' Group said that  dispensaries were caught in a "Catch-22" situation. She testified  that the DEA had seized $100K that BPG had saved up to pay taxes, and  that their raids appeared to be timed to the last week of the month,  just before bills are paid.

      Bill Pearce, director of the River City Patients' Dispensary in  Sacramento, testified that he had paid $700K in sales taxes to the  BOE plus $250K more to the IRS and Franchise Tax Board, before being  shut down and having assets seized by the DEA.

      Tariq Alazraie, manager of Purple Heart Caregivers and the former  Mason St dispensary in S.F.,  said the board had an obligation to  stand up for  dispensaries, given that it was recognizing them by  accepting their tax payments.

      State BOE member Betty Yee urged her colleagues to heed advocates'  testimony, saying she felt a "tremendous sense of responsibility on  this issue," and  it would "not be a pretty picture" if dispensaries  were driven back underground.   BOE member Bill Leonard, one of the  Board's  Republicans,  said he was concerned about allegations  that  the board might have shared confidential information with federal  investigators, declaring  that  confidentiality laws  strictly forbid  any such cooperation except by  subpoena.

       Medical cannabis activists left the hearings with the impression  that the Board had given them serious attention, and hopeful that  their objections to " taxation without representation" will be heard  by other public officials, including the Governor.