TOWN COUNCIL REJECTS MEDICAL MARIJUANA TAX MEASURE

'I Don't See Why We Should Put an Extra Tax on Marijuana If It's
Medical'

An anti-tax sentiment that has gripped much of the country in recent
months resonated in the chambers of Rebekah Hall on Tuesday, when the
Telluride Town Council rejected the idea of putting a new excise tax
measure before voters.

Up for consideration was an ordinance that would have placed a measure
on the November ballot that asked voters whether to approve a
5-percent excise tax on the sale of medical marijuana, medical
marijuana paraphernalia and medical-marijuana infused products.

The council had discussed such a measure, which is in place in other
towns such as Granby and Fruita, as it established a medical marijuana
licensing authority in recent months.

An excise tax is a tax that is imposed on specific products. In this
case, it would have come on top of a 5 percent sales tax already
imposed on dispensaries.

On Tuesday, despite evidence that the tax could yield tens of
thousands of dollars in revenues annually, the council decided to
leave it off the ballot.

Council member Bob Saunders said that since the town doesn't have an
excise tax on pharmaceuticals, he doesn't see why it would tax medical
marijuana.

"I don't see why we should put an extra tax on marijuana if it's
medical marijuana," Saunders said. "I'm not even in favor of putting
it out there."

Council Member Thom Carnevale echoed this. He said he was opposed to
the idea of piling an excise tax on top of the sales taxes medical
marijuana dispensaries already collect.

And council member Chris Myers said he doesn't think it was a good
idea.

"I don't think it's an appropriate time to be going to the voters and
asking for a new tax," Myers said.

Number crunching by town staff showed that the tax could bring in tens
of thousands of dollars in tax revenues a year for the town. In 2010,
the town collected $32,425 from medical marijuana facilities. If there
would have been a 5-percent excise tax, it would have brought an
additional $36,025 in.

For 2011, year to date collections have come in at $26,144. Based on
that number, staff estimates that the town could have collected as
much as $60,000 in tax revenues during the year 2011 if the tax was in
place.

Jerry Greene, who owns Baked in Telluride, called the tax measure
"greedy." He said that just because the town has the opportunity to
make money doesn't make it the right thing to do. The town is already
receiving money from taxing dispensaries that it wasn't receiving
before, he added, and that should be sufficient.

Several medical marijuana dispensaries have set up shop in Telluride
since the fall of 2009.

At the end of the discussion, no council member made a motion on the
item, rendering it dead.