InfoAnda - Oakland voters pass pot tax to boost city coffers

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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Africa Europe Latin America Middle East North America Search Search: Oakland voters pass pot tax to boost city coffers By LISA LEFF,Associated Press Writer AP - Wednesday, July 22 OAKLAND, Calif. - Oakland residents overwhelmingly voted Tuesday to approve a first-of-its kind tax on medical marijuana sold at the city's four cannabis dispensaries. ADVERTISEMENT Preliminary election results showed the measure passing with 80 percent of the vote, according to the Alameda County Registrar of Voters. The dispensary tax was one of four measures in a vote-by-mail special election aimed at raising money for the cash-strapped city. All four measures won, but Measure F had the highest level of support. Scheduled to take effect on New Year's Day, the measure created a special business tax rate for the pot clubs, which now pay the same $1.20 for every $1,000 in gross sales applied to all retail businesses. The new rate will be $18. Oakland's auditor estimates that based on annual sales of $17.5 million for the four clubs, it will generate an estimated $294,000 for city coffers in its first year. Pot club owners, who openly sell pot over the counter under the 1996 state ballot measure that legalized medical marijuana use in California, proposed Measure F as a way to further legitimize their establishments. "It's good business and good for the community," said Richard Lee, who owns the Coffee Shop SR-71 dispensary and Oaksterdam University, a trade school for budding dispensary workers. The measure had no formal opposition; in November 2004, a ballot initiative that required Oakland police to make arresting adults using marijuana for personal use their lowest priority passed with 63 percent of the vote. Support for Measure F was expected to be just as strong. As a result and given the mail-in nature of the election, there was little campaign activity, according to Lee. "We put out signs, but outside of that it's been pretty low-key," said Lee, who hosted a victory party at Oaksterdam University's Student Union building in downtown Oakland. Although California's 800 or so pot clubs also are expected to pay state sales tax, Oakland is the first city in the country to create a special tax on marijuana sales. Advocates of legalizing pot for recreational use hope to use Oakland's experience with Measure F to persuade California voters next year to approve a measure that would legalize and regulate marijuana like alcohol. Email Story IM Story Printable View Blog This Sign in to recommend this article » 0 users recommend Related Articles: World US envoy hears Pakistan concerns on Afghan warAFP - Wednesday, July 22 Pakistan jets kill Mehsud associates: officialAFP - Wednesday, July 22 Asia darkens under longest solar eclipse of centuryReuters - Wednesday, July 22 UK-World SummaryReuters - Wednesday, July 22 Maliki to meet Obama, seek support for investmentReuters - Wednesday, July 22 Most Popular – World Viewed Lost love letter reunites couple after 16 years Call girl scandal deepens for Italy's Berlusconi Shark attack victims fight for their attackers Man who went to the moon and came back an artist New York's 'Naked Cowboy' to run for mayor View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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