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Small
Businesses In The Medical
Marijuana Industry Are Under Pressure |
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 The
medical marijuana industry is under pressure from the
federal government and local communities.
Medical Marijuana companies in cities such as
Santa Monica and California are being forced to close shop.
The LA City Council is moving to ban medical marijuana
dispensaries citywide.
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According to the Board of Equalization, with over 400,000
users and and 638 small businesses with revenues in excess of $1.3
billion, California has the largest market for medical
marijuana in the country. It generates $105,000,000 in
sales taxes. |
Nation-wide sixteen states and the
District of Columbia have legalized the use of marijuana
according to the
National Organization for
Reform of Marijuana Laws.
These states include:
Alaska
Arizona
California
Colorado
Delaware
District of Columbia
Hawaii
Maine
Montana
Michigan
Nevada
New Jersey
New Mexico
Oregon
Rhode Island
Vermont |
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This is a multi billion
dollar industry. There are over 1,800 small businesses in
the industry. State sales taxes range from 0% to 7%.
Over $151,000,000 is generated in taxes to the states from
this industry annually. There are over 730,000 users
nationwide. |
Entry to the industry can be high
depending on the state. Some states charge a licensing
fee for businesses (caregivers) to operate as well as a
participation fee to individuals who want to join the state
medical marijuana program. Licensing fee can be can be
as high as $5,000 annually. The fee to join a medical
marijuana program can be as high as $200 per year.
Some
states limit the number of patients a provider can have at
1,000. |
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Cities are taking a hard look at medical marijuana laws
because these businesses have become a magnet for crime,
nuisance, and addiction. The intent of the medical marijuana
laws was to help sick people who can benefit from it's use.
However, the typical customer has become individuals without
a medical condition that requires the use of medical
marijuana. |
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Sources
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National Organization For The Reform of Marijuana Laws
(NORMAL)
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New York Times
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Vermont Medical Marijuana Fee & Tax Reort
By
Jack River
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