PROPOSED MARIJUANA TAX PROMPTS DEBATE

Promise Of More Revenue For State Attracts Interest In Pot

A University of Nevada, Las Vegas study estimating that nearly $29 million
in taxes could enter the state's coffers from the legal sale of marijuana
brought mixed reactions Wednesday.

Some said the federal government would never allow the state to charge the
tax in the first place, while others said the money would be a welcome
windfall amid a budget shortfall.

The study, released Wednesday, estimated the state could collect $28.6
million a year by taxing the sale of marijuana, as proposed in Question 9
on the November election ballot.

Sandy Haverly, executive director for Stop DUI, said she doesn't think such
a tax would be possible.

"Given that it's against federal law to grow and sell marijuana, and
federal law supersedes state law ... this seems to be a moot issue," she said.

Washoe County District Attorney Richard Gammick agreed. "It ain't going to
happen," he said.

Liz Moore, Southern Nevada coordinator for the Progressive Leadership
Alliance of Nevada, said a vote in favor of the proposal would be a vote
against federal policy.

"If the vote shows that federal law is out of sync with the people, then
that raises a serious question -- and a lot of 'Drug War' laws are not a
picture of what people think," she said.

Carole Vilardo, president of the Nevada Taxpayers Association, said her
organization had considered the possibility of taxing marijuana before the
study was released.

"The only position the association has had is that if in fact the voters
were to pass this, we would have to be able to tax the marijuana sold," she
said.

Vilardo added that $28.6 million represents about 7 percent of the state's
budget shortfall, which is greater than $300 million.

"So this is the proverbial nothing to sneeze at," she said.

Assemblywoman Chris Giunchigliani, D-Las Vegas, who supports the
initiative, said the tax revenue could be used for social programs.

"Now it's up to the voters to decide what they want -- the money to be
given to the drug dealers, or to funding rehabilitation programs,
education, long-term care for seniors and other programs that the state
needs," she said.

Nevadans for Responsible Law Enforcement, the organization behind the
question, paid $5,000 to the Center for Business and Economic Research at
UNLV to do the study. The results were based on an estimate of 75,000
regular users in the state.

The study estimates the average cost of an ounce at $250, with total sales
at $92.2 million.

Gammick said he expects the Drug Enforcement Administration would crack
down in Nevada if the initiative passes.

Legalizing marijuana would increase medical costs, Gammick said. In
Amsterdam, the medical costs "skyrocketed" after marijuana was made legal,
he said.

But Billy Rogers, head of Nevadans for Responsible Law Enforcement, says
the state concluded there would be "no adverse fiscal impact" if Question 9
is passed. That analysis was prepared by Secretary of State Dean Heller.

The proposal, which must be passed in November and again in 2004 before
taking effect, would permit the state to license stores to sell the drug
and also to impose a tax.

The proposed tax would be the same as the one on tobacco products other
than cigarettes, which is about three times higher than the tax on cigarettes.

Keith Schwer, director of the business center, said this was one of the
most unusual studies he has been involved in.

"The only thing that rivals this is a study we were asked to do on the
economic impact of a Grateful Dead concert," he said.

"I guess we've come full circle."