CITIES EYE TAXES ON MARIJUANA

If California voters want to legalize it, Larry Robinson wants to tax it.

The Sebastopol councilman is asking his fellow city leaders to
consider ways to tax marijuana sales if California voters approve a
measure on the November ballot that would legalize pot.

The council is scheduled to discuss the idea at its meeting Tuesday
night, joining a growing number of cities intrigued by the
bottom-line benefits of taxing marijuana.

Robinson said he's not asking the council to take a stance on
legalizing recreational use of cannabis. He just wants the city to
position itself to move quickly if voters approve the November ballot
measure, which would allow adults to possess and cultivate limited
amounts of marijuana.

"It's just recognizing that there's a relatively good chance that
this initiative will pass," Robinson said. "I just want the city of
Sebastopol to be in the best possible position to both regulate and tax it."

Robinson is proposing to place a measure before Sebastopol voters in
November that would authorize the city to tax marijuana sales. The
council must vote on the concept by August to make the ballot.

Robinson said he envisions a 1 percent to 2 percent local tax on all
marijuana sales, both on existing sales of medical marijuana and
potential future sales of pot for recreational use.

Rich Maloney, who purchases medical marijuana at the only cannabis
dispensary in Sebastopol, Peace in Medicine Healing Center, said he
would be willing to pay more if pot was taxed by local government.
The state already taxes sales of medical marijuana.

He credits cannabis for getting him off a host of narcotics that he
began taking after breaking his leg in a motorcycle accident a year
and a half ago.

Robert Jacob, executive director of Peace in Medicine, which soon
plans to open another clinic in Sebastopol, said he also welcomes
paying more taxes.

The more the nonprofit business contributes to the community, the
more people see it as a local asset, he said.

"Taxation provides legitimacy," he said.

Jacob, however, would only support the tax if Sonoma County adopts a
similar policy. Otherwise Peace in Medicine would lose its ability to
draw clients, he said.

Already, the clinic has to compete with dispensaries that have arisen
since a Superior Court judge struck down Sonoma County's marijuana
dispensary ordinance last December. The ruling is under appeal.

Sonoma County Supervisor Mike Kerns said he doesn't see the county
taking on marijuana taxes in the near future. It's premature to act
before state voters decide on the matter -- and before the appeals
case on the county's dispensary ordinance is settled, he said.

As a former cop, Kerns also has concerns about legalizing a "gateway
drug" that could lead to more problems.

Still other local leaders are more open to the idea. Santa Rosa City
Councilman Gary Wysocky said he would be interested in looking at
marijuana businesses as part of an overhaul of business license fees
or in addition to other "sin taxes."

"If it was legal, it should be taxed just like alcohol and tobacco," he said.

Other cities have already cashed in from marijuana sales. Last year,
Oakland became first U.S. city to impose a local tax on medical
marijuana dispensaries.

Berkeley leaders have recently discussed implementing taxes on
recreational and medical use of the drug.

Discussions in Sebastopol are very much in the early stage.
Councilman Guy Wilson said he is open to all intelligent ideas to
raise revenue, but is not convinced that allowing recreational
marijuana sales would be worth the burdens to the system.

"I am not convinced we have to do something right now," he said.