California Policy Opens Door For Taxing Sellers Of Medical Cannabis

Sacramento, CA: Provisions passed last week by the state Board of Equalization requires medical cannabis dispensaries registered with the agency to pay a sales tax on their merchandise. The measure seeks to regulate the state’s dozens of dispensaries in the same manner as other commercial establishments.

Under the new policy, businesses may apply with the Board for a sellers permit without indicating whether their merchandise is “unlawful” to sell.

NORML Legal Counsel Keith Stroup said that the Board’s decision demonstrates that “medical cannabis providers are viewed by lawmakers as an inherent part of the state’s economy. These dispensaries ought to be treated under state law like any other business, and medical cannabis ought to be treated in the same manner as any other legal commodity.”

Currently, only a handful of state dispensaries are registered with the Board, but more are expected to do so in light of the new policy.

For more information, please contact Keith Stroup, NORML Legal Counsel, at (202) 483-5500.