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Colorado Will Lower Marijuana Tax Rate

Category: News | Posted on Tue, June, 9th 2015 by THCFinder

colorado legal marijuana salesThe price of legal recreational marijuana in a state will largely determine the extend of the effect on the marijuana black market in that state. In a state like Washington, where the price for marijuana is still very high, the black market will never completely go away. That was a big reason why Oregon’s Measure 91 proposed such a low tax rate on legal recreational marijuana sales. The initiative called for a flat tax rate of $35 an ounce. Oregon legislators are trying to go against the will of the people by changing the original tax rate to a sales tax, and allowing cities to impose their own taxes on marijuana sales. All of those taxes will add up, raise the cost of legal marijuana, and will help the ensure that the black market stays around for a long time.

This is something that Colorado is realizing. Colorado has had a 10% tax rate on legal recreational marijuana sales since sales began at the beginning of 2014. That tax rate will lower in 2017. PerThe Joint Blog:

Colorado Governor John Hickenlooper signed into law Thursday a bill that will permanently cut the state’s tax on recreational cannabis sales, in addition to establishing a one day cannabis tax-break.

The tax cut, from 10% to 8%, will go into effect in early 2017. Proponents of the move believe it will lower the price of cannabis which will help the legal cannabis market compete with the black-market.

The proposal also establishes a one day cannabis tax break, or what some call a tax holiday. On September 16th of this year, cannabis sales won’t be subject to the state’s 10% sales tax. This is due to what Governor Hickenlooper, who is publicly opposed to legalization, calls a “fiscal glitch” with the constitutional.

It will be interesting to see what a 20% reduction in sales tax will have on overall marijuana industry tax numbers. I would assume that the growth of the industry in Colorado in 2017 will more than offset any reduction in taxes generated. I’d like to see the State of Washington follow suit by lowering its tax rate on marijuana, and by much more than 20%. If that doesn’t happen, Washington’s industry will never reach its full potential.

Read More:http://www.theweedblog.com/colorado-will-lower-marijuana-tax-rate/


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Charges Filed Against Medical Marijuana Advocate in Kansas

Category: News | Posted on Tue, June, 9th 2015 by THCFinder

WICHITA, Kan. (AP) -- A medical marijuana advocate who at least temporarily lost custody of her 11-year-old son following comments he made during a drug education program at school now faces criminal charges.

The Finney County Attorney's office announced Friday that 37-year-old Shona Banda faces five criminal counts related to the March 24 incident: distribution or possession with intent to distribute a controlled substance within 1,000 feet of school property; unlawful manufacture of a controlled substance, tetrahydrocannabinol; possession of drug paraphernalia; and endangering a child.

The divorced Garden City mother sparked a conversation on social media after going public with her story. Her attorney, Sarah Swain, did not immediately return a phone message seeking comment.

Banda is a motivational speaker and author of a book "Live Free or Die: Reclaim your Life ... Reclaim your Country!" that recounts her use of concentrated cannabis oil to treat Crohn's Disease.

In the news release announcing the charges, the county attorney's office noted it is illegal in Kansasto use or possess marijuana and its derivatives as well as to manufacture those drugs for personal use or otherwise.

Read More:http://www.hightimes.com/read/charges-filed-against-medical-marijuana-advocate-kansas


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Dino Blunt.

Category: Fun | Posted on Mon, June, 8th 2015 by THCFinder


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What '60 Minutes' Didn't Tell You About Legalized Marijuana

Category: News | Posted on Mon, June, 8th 2015 by THCFinder

On Sunday night, ’60 Minutes’ revisited a story it had previously aired on the state of Colorado’s legalized marijuana industry, going back to the state in order to get an update. The story gave a great broad overview of the industry, but by trying to cover so many parts of this business, many things were missed.

 

The ’60 Minutes’ piece, called ‘Colorado Pot,’ noted that it isn’t easy to make money in legalized marijuana, but then like most of these general stories, zoomed in on the giant safe full of cash. The public assumes that because these businesses are awash in cash that they are profitable. That isn’t necessarily the case. The story did touch on the seed-to-sale software, but didn’t note that for the huge warehouse full of plants featured in the story, the software company could be charging anywhere from $0.25 to $0.45 an RFID or bar-code. These bar-codes can’t be reused and a big warehouse like the one on the show that is growing thousands of plants is spending thousands for inventory tracking.

 

The show was accurate in describing the difficulty these business owners face in finding a bank. Most of the major banks will not service these customers and some of the state chartered banks that were stepping in are now pulling back. First, they are concerned about the new Attorney General Loretta Lynch who is not for legalization. Secondly, it’s expensive for the banks to handle these customers. The amount of employees required to fill out all the paperwork to keep the banks in compliance make these money losing customers. The banks have to fill out SARS paperwork or Suspicious Activity Reports on the accounts. This takes people and time and while these businesses may be swimming in cash, it doesn’t pay off for the smaller banks. The big banks have said they won’t allow this type of banking until marijuana is no longer illegal at the Federal level.

 
 

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