NM Senator Proposes Medical Pot Tax

[JohnMonad]

Senator Proposes Medical Pot Tax
By Dan Boyd
Journal Capitol Bureau

SANTA FE - Tobacco, alcohol, candy and soft drinks aren't the only products being eyed by New Mexico legislators as possible tax targets.
Sen. John Sapien, D-Corrales, has introduced a pair of proposals to tax medical marijuana, arguing that cannabis should be treated like any other commercial product.
"We need to get into a point of realism with medical marijuana as a mainstream item," Sapien said Wednesday. "These bills are not about legalization of marijuana in its totality. It's all about the revenue side."
Sapien's pot proposals call for gross receipts taxes to be levied on the sale of medical marijuana and a 25 percent excise tax to be enacted on licensed marijuana distributors.
The state has five licensed nonprofit medical marijuana distributors and has a number of other applications pending, according to the state Department of Health.
The department has also authorized 1,008 patients to buy marijuana under the program. Also, 307 patients are licensed to grow their own medical marijuana plants, said DOH spokeswoman Deborah Busemeyer.
However, New Mexico's medical marijuana program pales in comparison to the pot industries of other states, such as California. In California, the state's sales tax is applied to medical marijuana sales, and Sapien said he modeled his proposal partly after the approach in that and other states.
He said New Mexico's budget crisis requires lawmakers to look at all possible options to increase state revenue levels.
Though an analysis of how much Sapien's medical marijuana taxes would generate hasn't been completed, Sapien said he thinks the figure would be somewhere between $5 million and $20 million annually.
The state's medical marijuana law, passed in 2007 and dubbed the Lynn and Erin Compassionate Use Act, authorizes the Department of Health to oversee production and distribution of medical pot. Patients who are approved by department physicians are allowed to possess up to 6 ounces of marijuana at a time.

JohnMonad Reviewed by JohnMonad on 01-22-2010. NM Senator Proposes Medical Pot Tax Senator Proposes Medical Pot Tax By Dan Boyd Journal Capitol Bureau SANTA FE - Tobacco, alcohol, candy and soft drinks aren't the only products being eyed by New Mexico legislators as possible tax targets. Sen. John Sapien, D-Corrales, has introduced a pair of proposals to tax medical marijuana, arguing that cannabis should be treated like any other commercial product. "We need to get into a point of realism with medical marijuana as a mainstream item," Sapien said Rating: 5

[JohnMonad]

The cost to patients for their medical marijuana is already too high. Also we are being charged a sales tax here in Santa Fe.
I have purchased from SFINM and SWOP and both are collecting tax.

A hefty state tax on MMJ will force many patients back to the streets where prices are much lower than we are paying to get medicine from State authorized producers.
If Sapien wants to "legalize" Marijuana for recreational use I can see that as being a way for the State to raise money.

There is no tax on regular medication and MMJ should be treated the same as all medications.

Let's all work to defeat this "tax on sick people"

[patient4200]

and in addition (:-)) no doubt not a nickle of it will go to the DOH funding for the MCP , which is why I prefer the idea of increasing the renewal fee to 5 k after the first year as mentioned in a previous discussion

Pretty pie in the ski numbers too, with NM being one of the poorest states in the county, I'd like to see where the 5-20 million bucks is coming from, unless they tax it at 500%.

Somebody isn't too good at math, with each producer only allowed 95 plants under state law, this politician seems to think we're a collective state, where we have hundreds of people growing hundreds of pounds and where anybody with a headache can get a card. He should pack it up and move it to california

let's do some dispensary math...

95 plants

let's say we are all masters at marijuana botany and zero waste(Ha!)..every drop of material is worth $400 an oz(HA!). we get an amazing 8 oz per plant(Ha!$!)

5 crops a year (HA!) 3-4 if you are a master

(95*8*5)* 400=1.52mil

one million five hundred and twenty thousand in GROSS sales per dispenser * 20 dispensers = this ridiculous number ( five million or so) @ a 25% tax rate on gross sales. That's assuming of course that all 20 dispensers hit home runs on production and the poorest state in the country can buy 30 million in meds at retail ( double ha)

now we all know those numbers are totally unreal

Let's get a better-er number....

(95*2*4)* 400=304K

304k a year in gross sales..* 20 dispensers=6 million in gross sales

knock out allowable expenses and you're looking at 4 million in net sales

Since NM is a non-profit state, taxing MMJ at that rate simply takes the money way from needy charities and will likely discourage marginal producers from staying in business if they can't make expenses.

As it is, charging grt tax is fair and equitable, I don't expect a 25% tax on ANYTHING I purchase.

Just the silliest thing I've every heard. If you ask me, it's a move to DISCOURAGE the program or gain votes. I'm not feeling too great today or I'd research this some more

Write or call this Senator and let him know where you stand

Make a clear and valid argument for the best effect and make sure to check your "spillin"


Here's what my typical politico phone call would sound like..

Hi, my name is "x", I am a registered voter in "y" and my "z" is a registered MCP patient. I would hope you would do research on the actual MCP and Statewide logistics before you would push for this excise tax on something that most people on disability would be paying for.

I might suggest if you are interested in raising state revenues you ( insert your favorite pet peeve of New Mexico here) raise the costs of car registrations and drivers licenses for people convicted of the crime of DWI to a more significant amount (suggest 10-50x the current fees), since law enforcement is spending a tremendous amount of taxpayer money to arrest and prosecute these violators. Taxing Medical Cannabis would be like adding a 25% tax to Nexium or other important quality of life medications.

I can assure you that you won't get my vote next time around if this legislation passes.

Thanks for taking a moment to hear what I had to say. I know voter feedback is important in determining which legislation you will spend your time on.

Capitol Phone: (505) 986-4371 (btw, this number has been busy all day today)
Home Phone: (505) 765-5662
E-mail: john.sapien(at)nmlegis.gov

[JohnMonad]

Medication is NOT TAXABLE in NM
Marijuana is a legal medication in NM.
No tax on Viagra, aspirin, Oxycodone, heart meds etc.

Get it Sen. John Sapien, D-Corrales?

NOT GONNA HAPPEN!

Let's vote him out next time just for thinking of this stupidity!

JM

[coolslayer]

Wonder if he really thought this lame idea through?

[olliegrow]

Is this similar to what their trying to do in cali? I believe they want to tax it and put it on the shelf like alcohol and tobacco?

[coolslayer]

No,here they just want to tax medical cannabis.......no plans to legalize or decriminalize.

[bedrockbob]

I think that it is a great idea actually. I know that it is just another tax, but I look at it this way...

They are setting up a system by which it CAN be legalized and controlled. They are laying the groundwork for it to be a viable industry. A marijuana industry in New Mexico. Any industry has to pay taxes. I know it is a rough deal for MMJ patients but it will all even out a lot faster if we embrace this. Our politicians actually want to legalize or decriminalize to some extent. As politicians they cant let it get too wild (i.e.California) and they dont want to come out in favor of it unless it makes great fiscal sense. Soon it will.

The whole deal is MONEY. If we buy on the black market we support crime and so marijuana remains illegal. If we build a LEGAL system we enjoy a certain amount of freedom. To legalize also means to tax. Taxing will give them incentive to allow more people to get cards. One begats the other.

As opposed as I am to the government getting a cut of anything, I have to accept it as reality.

[JohnMonad]

So then its OK to tax all our meds?
Not only do we have illnesses but to feel better the State needs to to make a profit on our pain?
I think NOT!
If this tax goes into effect it will cost the patient more money and the 25% tax on the Non Profit Producers will put them out of business.
So say goodbye to the MMJ program and then maybe in 3 to 5 years Marijuana will be legalized and they can tax the shit out of it.
Of course this is all at the expense of sick people!

STOP THE TAX ON MEDICATION NOW!

JM

[dennisjill]

If you take the middle road of 5-20 million (call it 12.5 million dollars) divided among the 1003 patients, the patients would be paying $12,400.79 EACH per year. (and yes, the patients pay sales tax, not the 25%, but the non-profits have to charge someone to be able to pay the 25%, and the politicos aren't going to do it.)

There's more tobacco and alcohol usage than MMJ, why aren't they trying to levy that kind of tax?
Can someone say "tea party!"

Dennis from Montana