Colorado Moves to Tax Medical Marijuana

By: Brian Montopoli
Topics: Domestic Issues

(CBS/iStockphoto)

The Attorney General of Colorado said yesterday that his state can collect taxes on sales of medical marijuana.

"Medical marijuana is tangible property that is generally subject to state sales tax," Attorney General John Suthers said in an opinion, according to The Denver Post.

Suthers, a Republican, was responding to a query from the state's governor, Democrat Bill Ritter.

"This is another in a series of significant steps toward some sort of legalization of marijuana," said CBS News Legal Analyst Andrew Cohen. "Once local and state officials in Colorado and elsewhere realize how much income they can generate from this tax it will be harder for them or anyone else to argue that pot shouldn't be legalized and regulated in some fashion."

In response to the opinion, the Post reports, the governor's office says it will direct businesses that offer medical marijuana to obtain retail licenses and begin paying sales taxes.

CBSNews.com Special Report: Marijuana Nation

Ritter's spokesman said the move to regulate the industry comes amid "chaos" in medical marijuana distribution tied to a rise in dispensaries this year. (The state legalized medical marijuana in 2000.)

The move was welcomed by the director of a group that represents medical marijuana dispensaries and their clients and doctors who write prescriptions for the drug in Colorado.

"I think the community is willing to pay taxes if it will help prove the legitimacy of their efforts," Courtney Tanning of the Colorado Wellness Association told the Post. She said the medical marijuana industry "has been an underground, black-market community for so long that I think they're really willing to…pay dues to be taken seriously."

Brian Montopoli
Brian Montopoli is the senior political reporter at CBSNews.com.
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by RFWoodstock November 19, 2009 12:21 PM EST: Valid medicinal value, it?s a victimless crime, the War on Drugs WAY too costly, too many arrests for simple possession, tax it and use the money to pay for health insurance and to reduce the deficit?Need I say more?

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Peace, love, music, one world,
RFWoodstock; Reply to this comment

by rsteeb November 17, 2009 11:39 PM EST

Taxing medicine is unethical. So is Cannabis prohibition. Legalize it, and tax the RECREATIONAL use, while granting a tax exemption to the ill. Simple.

To keep Cannabis illegal while tobacco and alcohol are dispensed freely is *MURDEROUSLY STUPID*.

-Richard Steeb, San Jose California

Reply to this comment


by AttentionDeficit November 18, 2009 4:25 AM EST: I agree, but those in power apparently want to keep this insane prohibition at the behest of those who shove large amount of money up their rectums. I wish festering boils on the lot of them.


by FrankG2k9 November 18, 2009 11:51 AM EST: Richard, I couldn't agree with you more ! Well said. But if they tax the recreational users, it should be a reasonable amount.I've heard of a possible $35 tax per ounce ! That's outrageous ! Why is it so easy for us to figure this out but not politicians ? LOL !


by sarcasticfrog November 17, 2009 10:26 PM EST: Marijuana has the lowest associated health and societal costs when you look between tobacco, alcohol, and marijuana.
Tobacco health costs = $800.00
Alcohol health costs = $165.00
Marijuana health costs = $20.00

-Gerald Thomas, Chris Davis, "Cannabis, Tobacco and Alcohol Use in Canada
Comparing risks of harm and costs to society".; Reply to this comment


by AttentionDeficit November 17, 2009 8:44 PM EST: If pot were the same legal standing as alcohol, it seems that there would be a decrease in auto accidents, as booze is what makes people aggressive and prone to risk, while pot makes people more cautious. not to mention alcohol's link to violence that does not exist with pot. still, we will get the rude comments from posters who want to call pot smokers stupid. But, there numbers are fleeting. As to nowhiningallowed, you are the one doing the whining.; Reply to this comment

by nowhiningallowed November 17, 2009 8:00 PM EST

Anyone I've ever seen high on weed has been even dumber and number than they were without having smoked it. It accentuates their stupidity, reflexes and cognitive functions, assuming they had any to begin with. It's just a matter of time before these dolts will cause more auto fatalities because they were DUI on so-called medical weed.

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by AttentionDeficit November 17, 2009 8:32 PM EST: Well, you sure put forth a convincing argument. What have you taken to accentuate your stupidit?


by AttentionDeficit November 17, 2009 8:35 PM EST: sorry for the typo.


by Clark_Culver November 17, 2009 7:56 PM EST: It's about time! Stop the madness - end prohibition.; Reply to this comment


by MatterofLiberty November 17, 2009 7:40 PM EST: Pennsylvania is having their first hearing on Medical Cannabis on Dec 2. Their bill already has special provisions for taxing.Lets all show our support and help make some noise for them!; Reply to this comment


by kangaroolipstick November 17, 2009 6:29 PM EST: Legalize.. Everyone needs to watch the documentary, The Union: Business behind getting high.

http://video.google.com/videoplay?docid=-9077214414651731007#; Reply to this comment


by BeachBuzz November 17, 2009 5:22 PM EST: I wish Americans would just WAKE UP. Just about everyone that wants too, already does Cannabis regardless of the Draconian laws. I would rather see the U.S. make 42 billion extra a year in the way of taxes rather than spending 42 billion a year with this insanity that has gone on for the last 40+ years. No prohibition = no black market = no illegal money = no Cartels/gangs fighting for control = decreased corruption within law enforcement and government. You go Colorado !; Reply to this comment