CALIFORNIA MULLS CANNABIS TAX

SACRAMENTO, California: Could cannabis be a salvation for
California's fiscal misfortunes?

A member of California's state assembly is introducing legislation to
do just that: make California the first state to tax and regulate
recreational marijuana.

Assemblyman Tom Ammiano from San Francisco says it is time to reap
some state revenue while putting a damper on drug use by teens,
cutting police costs and even helping Mother Nature.

"I know the jokes are going to be coming, but this is not a frivolous
issue," said Mr Ammiano, a Democrat elected to the assembly in
November. "California always takes the lead - on gay marriage, the
sanctuary movement, medical marijuana."

Anti-drug groups are anything but amused by the idea of California
collecting a windfall from the leafy herb that remains illegal under
federal law.

Calvina Fay, executive director of Save Our Society From Drugs, said:
"Legalising drugs like this would create a whole new set of costs for society."

Mr Ammiano's measure essentially would replicate the regulatory
structure used for alcohol, with taxed sales barred to anyone under 21.

He said it would allow police to focus on more serious crimes while
keeping marijuana away from teenagers.

The environment would benefit, too, he said, by uprooting destructive
pot plantations that denude fragile ecosystems.

By some estimates, California's pot crop is a $US14 billion ($22
billion) industry. On that figure, the proposal could mean upward of
$US1 billion in tax revenue each year.

After posting a $42 billion budget deficit, "generating new revenue
is crucial to the state's long-term fiscal health", said Betty Yee,
California's Board of Equalisation chairwoman, who supports Mr
Ammiano's proposal.

Also in support of opening debate on the issue is the retired Orange
County Superior Court judge James Gray, a longtime legalisation proponent.

"I'm a martini guy myself," Mr Ammiano said. "But I think it's time
for California to look at this in a truly deliberative fashion."