Limited local economic power to tax cannabis

This is included in a April 21 post on newrevenue.org.

I’m giving panel talks on this topic April 21 and 22 in Riverside and Irvine, California. California gives localities a free hand, legally, to impose taxes and fees on cannabis commerce, but economically, their hand is less free.

7 reasons localities have limited economic power to collect taxes or fees on cannabis:

  1. Your taxes, combined with state taxes, are too high compared to the black market.
  2. Law enforcement is ignoring the black market.
  3. Loyalty: The black market dealer is the some buyers’ friend, and they want to keep doing business with him.
  4. Consumers grow their own, or get it from someone who does.
  5. Trip that’s not special: Consumers work in a jurisdiction with lower taxes and go there every day. Maybe they work there, or their mother lives there.
  6. Sensible special trip: They live so close to a jurisdiction with lower taxes that it makes economic sense to drive there.
  7. Spiteful special trip: They go out of their way to buy in a jurisdiction with lower taxes – spending more on gasoline than they save on taxes. They cut off their nose to spite their face – because they say your taxes are too high and they want to show you.

+++

Program:

SAVE THE DATE:  April 21-Riverside/April 22-Irvine

CCIA Educational Forums
Hosted By:

 

Navigating the laws and regulations relating to medical marijuana and the Medical Marijuana Regulation and Safety Act (MMRSA).

Join regulation and industry experts for an educational discussion regarding medical cannabis, the passage of the Medical Marijuana Regulation and Safety Act, and the role of public health and safety in the emerging cannabis industry.

This forum is presented at no cost to attendees, but registration is required

To Register for the April 21st Riverside Forum:

3400 Market Street, Riverside, CA

Registration: HERE
On-Site Registration:  12:30PM | Panels:  1-5PM | Reception:  5-6:30PM
To Register for the April 22nd Irvine Forum:

18800 Macarthur Blvd., Irvine, CA 

Registration: HERE
On-Site Registration:  12:30PM | Panels:  1-5PM | Reception:  5-7PM

 

 

Advertisements

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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s