Dispensaries

San Jose To Pot Clubs: You’re Illegal; We’re Taxing You Anyway

By Steve Elliott ~alapoet~ on February 28, 2011 Dispensaries, News

San Jose’s medical marijuana dispensaries are required to pay a new tax starting tomorrow — even though haven’t been declared legal yet.

Even though San Jose, California considers all of its 100 or so medical marijuana dispensaries to be unlawful, city officials are still welcoming the pot providers to City Hall on Monday to talk about a new program which greatly interests the cash-strapped city: a marijuana tax.

Starting Tuesday, March 1, San Jose will slap a seven percent tax on marijuana dispensaries under a measure city voters overwhelmingly approved in November, reports John Woolfolk at the Silicon Valley Mercury News.

Most dispensary owners always assumed taxation would also mean legal acceptance, but now it appears the beleaguered providers will be catching it from both sides: they’re still subject to police raids at the same time they are responsible for paying taxes.

229 Marijuana Dispensaries Make Deadline For L.A.’s Lottery

By Steve Elliott ~alapoet~ on February 25, 2011 Dispensaries, Legislation, News

Photo: Kevork Djansezian

More than 200 medical marijuana dispensaries have applied to be in a lottery to select 100 legal dispensaries in Los Angeles.

The lottery is L.A.’s second try at narrowing down the number of pot shops in the city, reports John Hoeffel at the Los Angeles Times. The first attempt relied on a moratorium ordinance, but was ruled unconstitutional by a judge.

According to the city clerk’s office, 229 applicants had filed by the February 18 deadline to participate in the lottery. The office released only the number of applicants, declining to provide any information on them.

Charges Dropped Against Washington Pot Dispensary Owners

By Steve Elliott ~alapoet~ on February 24, 2011 Dispensaries, News

Graphic: North End Club 420

Pierce County, Washington prosecutors have dismissed numerous marijuana charges filed last year against two men who run a Tacoma medical marijuana cooperative, North End Club 420.

Guy Lewis Casey and Michael Jonathan Schaef — who operate the dispensary on Oregon Avenue in Tacoma — had been scheduled for trial in April, reports Adam Lynn at the Tacoma News Tribune.

IRS Auditing California Medical Marijuana Dispensaries

By Steve Elliott ~alapoet~ on February 22, 2011 Dispensaries, News

Photo: Eric Wolfe

Steve DeAngelo, executive director of Harborside Health Center, Oakland’s largest medical marijuana dispensary, looks over a marijuana display case

The U.S. Internal Revenue Service is auditing medical marijuana dispensaries in California, with advocates calling for a change in federal tax laws.

The sale of medical marijuana from nonprofit dispensaries is legal under California law, but possession, cultivation or sale of cannabis for any purpose is illegal under federal law. Patient collectives in California say there is a problem because of the way they are being treated by the IRS, reports CNN.

The problem is federal tax code 280-E, which does not allow “drug trafficking organizations” to deduct business expenses.

“If 280-E were applied strictly, we would not be allowed to deduct our rent, our payroll or any of the other normal and usual expenses that other businesses deduct,” said Steve DeAngelo of Harborside Health Center, one of the biggest Bay Area dispensaries.

Months After Dispensary Raids, No Charges And No Money Back

By Steve Elliott ~alapoet~ on February 21, 2011 Dispensaries, News

Photo: Cal Pot News/Corning Observer

More than seven months after Butte County, California law enforcement coordinated raids on seven marijuana dispensaries, the sheriff’s office claims it is still “investigating” the case, so the District Attorney’s Office has yet to file criminal charges.

A number of dispensary owners have since filed civil cases to have their confiscated money returned, reports Katy Sweeny at the Chico Enterprise-Record.

More than 100 law enforcement officers on June 30, 2010 served search warrants on seven marijuana dispensaries and 11 residences in Chico, Forest Ranch, Magalia and the Sacramento County town of Rio Lindo. The officers stole — I mean, “confiscated” — marijuana, guns, financial records, computers, Proposition 215 verifications, cash, and other items.

Medical Marijuana Bill Introduced In Kansas

By Steve Elliott ~alapoet~ on February 18, 2011 Dispensaries, Legislation, Medical

Kansas Medical Cannabis Network

Lawmakers on Monday introduced the Kansas Compassion and Care Act, which would make growing, selling, buying and smoking marijuana for medicinal purposes legal under state law.

“Legalizing medical marijuana in the state will not only allow those with debilitating conditions an alternative to pharmaceutical drugs, but will also help lower the amount of people that have to turn to the black market to obtain their medicine,” said Kyle Norton, director of Johnson County NORML.

House Bill 2330 has been referred to the House Committee on Health and Human Services for consideration and debate. Under this measure, patients with certain debilitating conditions would be able to use medical cannabis without fear of reprisal under state law, reports JoCo NORML.

The bill would also protect patients’ rights as employees, tenants, and parents. A patient registry system would be established, along with nonprofit care centers and a board to oversee the entire program.

Drive Ignites To Make California Medical Marijuana For-Profit

By Steve Elliott ~alapoet~ on February 17, 2011 Dispensaries, News

Photo: Mission Local

San Francisco Assemblyman Tom Ammiano wants to propose an “omnibus cannabis bill” to better oversee California’s booming medical marijuana industry, which the attorney general’s guidelines so far have dictated must be nonprofit.

According to Ammiano, the radically different approaches to dispensaries — which are welcomed in some cities, but raided in others — shows the need for clear, statewide regulations to create a more “cohesive response.”

“Don’t worry, L.A. pot-shop owners,” writes Dennis Romero at LA Weekly. “It sounds like what he wants to do is regulate it as-is — codify its status as a business and forget this nonprofit b.s. Maybe.”

Medical Marijuana Repeal Would Hurt Montana’s Economy

By Steve Elliott ~alapoet~ on February 17, 2011 Dispensaries, Legislation, Medical

Graphic: KTVQ

House Bill 161, Montana’s medical marijuana repeal bill, has only been approved by the House of Representatives. It hasn’t cleared the Senate, nor has it been signed by the governor. But dispensaries in Missoula are concerned about possible negative economic effects if the law is repealed.

Thousands of jobs could be lost, cities would lose revenue from business taxes, and many more people would be relying on food stamps if repeal passes, according to Dave Stephens, owner of Better Life Montana in Missoula.

“It’s a bad idea all the way around,” Stephens told Paige Huntoon of the Montana Kaimin, the student daily at the University of Montana at Missoula.

Flagstaff, AZ Removes Size Limits On Marijuana Dispensaries

By Steve Elliott ~alapoet~ on February 17, 2011 Dispensaries, News

Graphic: CannabisCenters.com

The Flagstaff City Council on Tuesday night removed a proposed zoning restriction on medical marijuana dispensaries inside the city limits that had capped the size at 3,000 square feet. With the size of dispensaries now unlimited, it is expected that most of the marijuana sold at the shops will be grown on site, rather than at remote locations.

Council member Art Babbott said he agreed with a recommendation by the Flagstaff Police Department to have the retail side of a dispensary co-locate with growing operations, reports Joe Ferguson at the Arizona Daily Sun.

Police officials said they believe co-location will make the local medical marijuana industry safer by reducing the number of locations and removing the need for large cannabis deliveries to replenish stock at dispensaries.

David Grandon, a former local art gallery owner, said earlier this week he wanted the city to increase the maximum size for dispensaries to accommodate other therapeutic services, such as chiropractors and massage therapists.

Council: Marijuana Dispensary Licenses First-Come, First-Served

By Steve Elliott ~alapoet~ on February 17, 2011 Dispensaries, News

Photo: World News

The city of Ypsilanti, Michigan will consider medical marijuana dispensary licenses on a first-come, first-served basis, despite concerns from some members that it will result in applicants camping out at City Hall to be the first in line.

The Ypsilanti City Council on Tuesday night unanimously approved the ordinance establishing the licensing process, reports Tom Perkins at AnnArbor.com. The procedure through which the city would handle receiving dispensary applications had been the last major sticking point in the ordinance.

The council approved the ordinance as a resolution, which waives the 30-day posting period and means the ordinance takes effect on Tuesday, February 22. That cuts the time new dispensaries will have to wait to submit an application by 30 days.

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