STATES WEIGH TAX ON MARIJUANA

This is the third story in a series of occasional, ongoing articles
exploring various aspects of illegal drugs and their use in the United
States.

In these tough financial times, states and local municipalities are
struggling to find new and creative ways to generate money to close
budget gaps.

In the state of California, some legislators are turning to another
kind of green to generate some that can be spent.

With an estimated $14 billion worth of marijuana being sold in
California annually, one state assemblyman sees an opportunity missed
and is attempting to smoke out some additional revenue.

Legalization With Taxation

On Feb. 23, first-term legislator Tom Ammiano, D-San Francisco,
introduced a bill called the Marijuana Control, Regulation and
Education act which would create a regulatory structure similar to
that used for beer, wine and liquor, permitting taxed sales to adults
while barring sales to or possession by those under 21.

"With the state in the midst of an historic economic crisis, the move
toward regulating and taxing marijuana is simply common sense. This
legislation would generate much needed revenue for the state, restrict
access to only those over 21, end the environmental damage to our
public lands from illicit crops, and improve public safety by
redirecting law enforcement efforts to more serious crimes," Ammiano
said in a press release earlier this year. "California has the
opportunity to be the first state in the nation to enact a smart,
responsible public policy for the control and regulation of marijuana."

Since its introduction, the bill has been shelved, although Ammiano
said it will be re-introduced in the next legislative session.

Even as the bill's future is uncertain, the conversation about
legalizing marijuana in order to regulate and tax it is ongoing.

Taxing Medical Marijuana

In 1996, California voters approved Proposition 215 which allowed for
medical marijuana to be possessed and used by people with a valid
prescription from their doctor. Since then, 12 other states have
enacted medical marijuana legislation although specific laws do vary
from state-to-state.

In California however, the medical marijuana dispensaries are
regulated and taxed at a rate which varies from place to place. Some
citys and towns collect fees from the businesses while others don't,
and the businesses are often seen as residing in the shadows,
according to Dan Bernath, the assistant director of communications for
the Marijuana Policy Project, a Washington-based lobbying firm.

Oakland voters overwhelmingly approved a measure in July that will
increase the tax imposed on the dispensaries from $1.20 per $1,000 in
business revenues to $18 per $1,000 under a new cannabis business tax
classification, creating an estimated increase of $294,000 in revenue
per year.

"It's not often that you see people coming out to say they want to be
taxed, but the dispensaries are eager to pay their fair share,"
Bernath said. "They've been marginalized in a way and the special tax
designation in Oakland finally legitimizes their business."

Marijuana Prohibition

In the TV show Weeds, which can be seen on Showtime, a suburban single
mother sells marijuana in order to support her two children and pay
the mortgage on the home that she and her husband bought before he
passed away.

She attends her youngest son's soccer games and sells bags of
marijuana to lawyers, doctors, teachers, city councilmen and others
considered society's most respected and influential.

And despite what some people may believe, that theatrical presentation
may not be far from the truth.

"The truth is that there isn't just one kind of person using marijuana
in the U.S. - it's used mostly by people who are otherwise law-abiding
citizens," Bernath said. "The preconceptions that people have show the
general misunderstanding out there about marijuana and who uses it."

Bernath cited federal surveys which concluded what many were thinking
all along - more people are using marijuana than you might think.

"Around 15 million people have said they use marijuana every month, 25
million said they use it every year and over 100 million people said
they have used it in their lifetime," he said. "That's about 40
percent of the population - not some small group of people."

And although marijuana use among teenagers is down, according to
federal data released over the last few years, the general trend has
been a 35-year increase.

"The fact that 85 percent of teenagers said that marijuana was easier
to get than alcohol shows that regulation is a better alternative to
prohibition," Bernath said. "Since we started cracking down on asking
for I.D. to buy alcohol and cigarettes, the rates of teens using them
have declined, and a lot of tax money is being made."

It has been argued that legalizing marijuana would only drive some
users further underground in an attempt to avoid taxation, but Bernath
suggests legalization would actually lower marijuana prices - even
with a steep tax added on.

"It is not a hard plant to cultivate but when you are at risk from law
enforcement for doing so, it increases the price - resulting in an
inflated market," he said. "Legalization would ensure that marijuana
is regulated by the government instead of drug dealers, which would
mean it has less of a chance of getting to children. And although the
tax money wouldn't be the sole solution to the budget woes everywhere,
it would begin collecting money that is out of reach at this point."