A Taxing Issue for Marijuana in Massachusetts

In Thursday's late online edition of the Boston Herald, it was reported that State Senator Brian A. Joyce — who wants all pot sales to be subject to the 6.25 percent sales tax — said he’s adding his amendment to the Senate budget that was released yesterday.

The entire article can be found in the Boston Herald link.

I wrote on April 14 in my commentary, Mary Jane's Business Model that states should certainly consider taxing marijuana, whether it is used for medical or recreational purposes. It is a tax which will be rolled (no pun intended) into the cost of the product sold at the dispensary. The add-on of 6.25% that Senator Joyce is writing into law seems to conform to the other States and the District of Columbia which have legalized marijuana for medical use. Only Illinois has not applied a sales tax at the point of sale from the distributor to the dispensary.

As of this writing, 22 States and the District have legalized it  for medical use and are in various stages to implement its sale, with more States ready to get on board.

English: Medical Marijuana surrounding a vaporizer for healthy intake of the medicine. (Photo credit: Wikipedia)

Certainly, debate on this bill will be spirited since advocates on both sides of the proposal have raised legitimate arguments both for and against a tax on medical marijuana. The proponents for the tax understand it cannot be too high or buyers will continue to use the streets to purchase, while opponents feel additional taxes will prove to be burdensome for those already financially strapped due to higher medical costs.

In the end, compromise and common sense must prevail in Massachusetts. We will see how this plays out as legislators resolve next year’s budget and the various amendments attached to it.

Hopefully, in the end, this issue will be resolved with little fanfare and less stress than most people anticipate. After all, Massachusetts does not want to see its marijuana law take an unnecessary hit as it tries to get its law off the ground.

Otherwise, those who medically need marijuana as a solution will instead see their panacea to pain and suffering go up in smoke.