New Mexico: For Revenue, One State Looks To Medical Marijuana

By Marjorie Childress, New Mexico Independent

The ongoing budget crunch the state of New Mexico and local governments are facing, a central question on many people’s minds is how to raise revenue.

While it’s still in its infancy in this state, New Mexicans might take heart from the emerging medical marijuana sector. We only have one nonprofit and a relatively small group of patients so far, so there’s not much to tax. But looking west, we might eventually take a page from California.

The state of California raises $18 million a year in state sales tax from medical marijuana dispensaries. And the city of Oakland just became the first city in the country to impose a sales tax on its local dispensaries. The expected revenue won’t be much, according to a New York Times report, but the mayor is still exploring “all measures that will help with our budget situation.”

And legalization advocates are on board. Not only does it further legitimize legalization, paying the tax is “a lot cheaper than lawyers.”

California is well ahead of the curve when it comes to legalizing marijuana — medical use was made legal in 1996 and the state assembly is debating legalization and taxation of marijuana in general later this year.

I’ll be keeping one eye on that debate. Because you know the saying: As goes California, so goes the nation.


Source: http://newmexicoindependent.com/32468/for-revenue-one-state-looks-to-med...