CALIFORNIA STATE ANALYSTS CAN'T MEASURE PROP. 19's TAX REVENUE POTENTIAL

The state Board of Equalization, which last year famously declared
that legalizing marijuana could generate $1.4 billion in new tax
revenues for California state coffers, has an updated analysis out
for Proposition 19, the November ballot measure to legalize marijuana
for recreational use.

This time, the BOE says it is clueless on what legal weed can bring in.

Officials also said it may take them months or years to implement
potentially needed systems for collecting new marijuana taxes that
may result from Proposition 19.

In its previous analysis, the BOE heavily based its tax revenues
estimate on a $50 per ounce pot tax proposed in state legislation by
Assemblyman Tom Ammiano. But no such tax is proposed in Proposition 19.

The initiative leaves it up to local governments to tax and regulate
retail marijuana operations. Ammiano, D-San Francisco, has introduced
a bill to regulate the sale of recreational pot, but he says he'll
likely pick up his push in the Legislature for a statewide pot tax if
Proposition 19 is approved.

But until then, BOE officials say, don't expect them to come up with
a state pot revenues estimate.

"Proposition 19 does not contain specific provisions at the state
level governing taxation or retail sale (of marijuana)," the BOE
analysis says."Local jurisdictions are free to choose to impose
licensing fees or implement differing tax schemes or rates. BOE staff
is not able to create estimates of marijuana consumption and price at
the local level. BOE staff is not able to estimate the impact that
legalization, local regulation and taxation will have ... ."

The BOE currently collects sales taxes on medical marijuana
dispensaries. Its analysis says implementing a system for collecting
new taxes on recreational pot use may be difficult.