The ambassador of Phoenix is able to burden a cogent new tax on medical marijuana businesses that could abate the city’s dispensaries and accession costs for patients.
In a letter to the Phoenix burghal administrator on Thursday, Ambassador Thelda Williams proposed an anatomic licensing tax on medical-marijuana businesses in adjustment to armamentarium Phoenix’s badge and blaze departments.
The letter, acquired by Phoenix New Times, directs Burghal Administrator Ed Zuercher to place a accessible tax and licensing affairs for marijuana-related operators in Phoenix on the October 2 Burghal Council agenda.
The city’s attractive at options with big numbers, like maybe an anatomic authorization tax based on 17 percent of the antecedent year’s gross receipts, or a flat-rate allotment tax of $560,000 on medical marijuana retail businesses and $920,000 on agronomics sites.
J.P. Holyoak, the architect of medical-marijuana supplier Arizona Natural Selections, said that a $560,000 tax on retail locations would be prohibitive.
“That puts us all out of business. Every distinct one of us,” he told New Times on Thursday.
“What they’re aggravating to do is they’re aggravating to tax us out of existence. They’re about aggravating to annul the medical-marijuana law by demanding it out of existence,” Holyoak said.
In Williams’ view, the burghal would about use pot to armamentarium badge officers.
“We accept afresh accustomed advice from the Badge and Blaze Chiefs advertence that our accessible assurance assets in Phoenix are strained,” Williams wrote. “It is bright to me that we are clumsy to accumulate up with the accessible assurance needs of our Burghal due to banking constraints.”
In adjustment to accompany in acquirement for accessible safety, Williams added, her appointment has been ytical new acquirement sources. She proposes a new anatomy to authorization and tax medical-marijuana operators.
Williams wrote in her letter that the new tax advantage is meant “to assure the bounded apropos of accessible health, safety, affection of activity and the abundance of the City’s association and visitors.”
According to a address absorbed to Williams’ letter, the affairs would crave an anatomic authorization or a allotment tax to accomplish a berth agronomics site, retail berth location, or accessible burning lounge.
Several abeyant options for the new tax are categorical in the letter, with advancement affairs for a new tax in case the courts invalidate the aboriginal option.
One tax is affected based on aboveboard footage: $50 per aboveboard bottom for agronomics and beverage sites and $280 per aboveboard bottom for retail locations or lounges.
If that is invalidated by the courts, a additional advantage is listed as 17 percent of the operator’s gross business receipts during the antecedent year. Finally, if that achievability is disqualified out, a third advantage is for a flat-rate allotment tax of $920,000 on anniversary agronomics armpit and $560,000 on anniversary retail area or lounge.
However, if all those tax types are invalidated by the courts, the address says, Phoenix will crave dispensaries alteration marijuana to use certified defended carriage providers to bear their articles to and from locations with a account fee not to beat $175 per mile.
In an emailed account to New Times, Williams said, “Phoenix’s Badge and Blaze departments accept abounding needs and face austere challenges. Today, allotment for accessible assurance is artlessly not area it needs to be.”
“On Oct. 2, the Burghal Council will accede a artistic access to award a new acquirement antecedent to advice armamentarium accessible safety,” Williams continued. “The angle is in no way an attack to distinct out medical marijuana businesses that accomplish accurately in the city, but a angle to authorize a acquirement anatomy for a growing industry that adds burden to accessible safety.”
Despite the affirmation of accessible assurance issues, though, burghal agents say in an October 2 calendar for the Planning and Economic Development Subcommittee, “Based on the abundant reviews of absolute non-profit medical marijuana dispensaries, there are not cogent public-safety issues or adverse furnishings from these establishments.”
Because dispensaries aren’t a problem, agents acclaim acceptance them to extend their hours to 10 p.m.
Correction: A antecedent adaptation of this commodity declared that one allotment tax angle is based on 17 percent of the marijuana operator’s gross profits during the antecedent year. The angle is to tax gross receipts, not profits.
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