COLO. ATTORNEY GENERAL: LET'S TAX MEDICAL MARIJUANA

In an opinion that could generate more revenue for cash-strapped
governments and give additional legitimacy to a fledgling industry,
Colorado Attorney General John Suthers said Monday that the state can
collect sales tax on medical marijuana.

"Medical marijuana is tangible property that is generally subject to
state sales tax," Suthers, a Republican, wrote in response to a query
from Gov. Bill Ritter, a Democrat.

The opinion also said medical-marijuana dispensaries must obtain
retail-sales licenses from the state to do business.

Ritter's administration said it would immediately direct
medical-marijuana dispensaries to start paying sales tax and obtain
retail licenses.

"Colorado voters have said they want medical marijuana in Colorado,"
said Ritter spokesman Evan Dreyer. "But what we have now is chaos."