Medical Marijuana advocates seek ballot measure in Santa Ana
Posted by Thomas Gordon on February 8, 2012
A group called the Committee to Support Medical Marijuana Ballot Initiative pulled paperwork from the Santa Ana City Clerk to begin the process of gatherings the roughly 5000 signatures needed to qualify it for the November ballot.
The initiative would allow medical marijuana dispensaries to operate under strict guidelines such as limiting hours from 9 am to 9 pm, restricting patients to 21 years of age and older, forbid loitering and limit dispensaries no closer than 600 feet from a school or park. It would also limit the number of dispensaries in Santa Ana to no less than 20, possibly more.
Medical Marijuana dispensaries were outlawed in Santa Ana in 2007 but according to Santa Ana Police no fewer than 62 operate illegally.
In an effort to sweeten the pot the backers of the measure to legalize have proposed an additional 2% sales tax on medical marijuana to benefit the cities depleted general fund.
In 1996 California voters passed Prop 215 which legalized the use of marijuana for medical purposes so long as it was through community collectives.
Given Santa Ana’s track record I’m curious to see how this will all play out…..
OC Political 
Art Pedroza said
But Thomas, what is YOUR position on this issue? You left that out of your post.
Dan Chmielewski said
Is it true the city is seeking to collect an additional sales tax on the sale of medical marijuana? Does the city collect additional taxes from the sale of prescription medicine?
Elliott Ness said
The drug dealers are seeking to enlist the support of the SA Council by enticing them with the drug they seek – sales tax money.
If the drug dealers fail to get the support of the Council – they would settle for their silence on the issue. This is incideous.
Tom Hall said
No it is not true.
Elliott Ness said
TYPICAL untruthful response from a medical pot advocate.
The CITY is not seeking to add an additional tax on the sales of medical marijuana – but the drug dealers ARE seeking to add such a tax.
Suszan Ales said
Santa Ana residents and business owners have no idea that currently there is: “no” tax on medical marijuana, “no” profit for anyone but the dispensaries, “no” limit to the excuses that qualify as medical need, “no” valid statistics on the number of young adults “using” (98% plus), “no” limit to the endless cash flow, “no” clue to the number doing business in !.2 straight miles on 17th Street (15 plus) (5 next to my building), “no” idea of the reputation Santa Ana is getting, and worst of all … “No” perception of safety for anyone that lives or works in our city.
Tom Hall said
Suzan,
There is “no” tax on milk either.
There is plenty of profit for the growers, the phone company, the web designers, the .99 store (for the jars), the office supplies……
Cancer or AIDS is a pretty bad excuse. So is that silly Multiple sclerosis stuff.
Who gets to define “validity”?
Really, no limit, one could argue, this burgening industry has been one of the hardest hit by the BUSH Recession.
Maybe they don’t care if there are fifteen profitiable business in an economy like this?
Reputation? how about that silly “Education First” that Richardsons cabal wasted a few million one, or the Artists viliage, or how about Gentrifying downtown so “hip” white people from Irvine can spend money???
I suspect most Santa Anan’s are well aware of thier surroundings. And 17th street south of I5 is perhaps among the safest. I defy you to walk hang out at Mrytle and Raitt for an hour or grab a shot and a beer at Piccilo’s. Thats where you get a reservation (and shot).
Your arguements are sophmoric and wrong. Besides, these guys pay a lot of taxes, take a look at the utility bills.
Elliott Ness said
Her arguments are right on point – you are wrong. You are a typical pothead.
I have had these pot shops near my neighborhood – their clientel are disgusting slobs – not your little old lady needing pot for her glaucoma. You all are liars and stink like shit.
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TJLocalSA said
Hi all, newbie here…hopefully I can contribute on some topics. Not my normal main topic but the tax side intrigues, so I figured I would chime in:
1. I believe that Med Marijuana is currently subject to regular sales tax activity…is that correct? If so, does anyone know how much in tax the state collects? Suszan indicates that there is no sales tax, but I thought there was….hopefully will find out on my own. Maybe it is a technically “yes”, but in practice, “no.”
2. How are these dispensaries generally formed legally? Are they non-profit corporations that have filed to be tax exempt organizations with the IRS? Do they file 990’s (tax exempt tax returns) which are subject to public inspection?
Thanks!
Elliott Ness said
Here is a link to the proposed SA initiative. As you might expect, the initiative is designed to favor the sponsors – medical marijuana dispensaries.
http://www.box.com/shared/cmmqa1x54se218hx4dlk
Readers – let us know what you think about this proposed initiative.
TJlLocalSA said
Thanks Elliott for the link. I would like to point out one error in the original post which states that it would limit the number of dispensaries to 20- the initiative actually indicates that “no less than 20 marijuana consumer initiatives/dispensaries shall be legally established…”. That is a HUGE difference- essentially means that there is no limit on the # of dispensaries in the City. Hopefully that was just a mistake…
Looks like from the BOE that the sale of medical marijuana is subject to sales tax.
Additionally, an interesting note on the income taxation of these businesses…they are not able to deduct ANY of their expenses according to IRS Code Section 280E. This means that unless they are qualified as a tax exempt- this is big trouble. This ultimately could be the downfall of these dispensaries unless they have gone through the steps of the acquiring tax exempt status with the IRS. This is a very big deal- they are taxed on their GROSS SALES and not allowed any expenses. Gross sales x tax rate = tax owed. Did a quick search of some of the dispensaries on the initiative (the initial 20 approved) and from a quick search on the IRS list of tax exempts I did not see the ones I checked on there…watch out! The IRS will be the next to come down on them. I do see some of them qualified with the Sec of State of CA as corporations but I could not find a single one as a tax exempt with the IRS…oops. Any dispensaries who may be reading this- no joke, go through the process and qualify as a tax exempt otherwise, watch out.
thomasagordon said
TJILocalSA- it was indeed a mistake- I did not have the ballot measure in hand when I wrote the post and relied on the OC Register which stated – “The measure would allow 20 businesses that support the rules to operate, a number she says is appropriate for a city the size of Santa Ana, but allows for more. Hawes said that police officials have told her that 62 dispensaries operate in the city.”
Thanks to Elliot for providing the ballot measure and you for pointing it out- corrections have been made to the post above.
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