A new tax base for marijuana — electrical use

In Arcata, California, in the heart of that state’s marijuana growing region, “Measure I on next week’s ballot would impose a 45 percent electricity tax on households — with medical and other exceptions — that use three times the amount of power a typical family home does.”  Jeff Bernard, AP, http://www.redding.com/news/2012/nov/04/arcata-targets-industrial-marijuana-growers-measur/

If you can’t measure output, maybe you can measure grow area.  If you can’t measure that, thanks to federal prohibition, here’s a different tax base.  Clever.  During a recent drought, my town cut down on lawn watering by setting an amount of water a family might reasonably use, then charging a super premium for amounts way over that base.  It’s the same idea.

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Author: patoglesby

From 1982 to 1990, I worked in tax policy for Committees of the United States Congress. In recent years, I was Adjunct Lecturer at UNC-Chapel Hill's Business School and then Adjunct Professor at its Law School.

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