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Medical Marijuana Is Not Taxable


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I have seen some post related to taxes, so I thought I would remind people of this release by the Michigan department of treasury. Take it for what it is, but as always precede with cation.

 

 

 

My link

 

 

72 (Rev. 01-11)

STATE OF MICHIGAN

RICK SNYDER DEPARTMENT OF TREASURY ANDY DILLON

GOVERNOR LANSING STATE TREASURER

April 4, 2011

James Campbell, CPA

NUMBERS Professional Accounting Services

300 East Fourth Street

Royal Oak, Michigan 48067

Dear Mr. Campbell:

Re: Tax Revenue and the Michigan Medical Marihuana Act

The State Treasurer has asked me to respond to your recent inquiry regarding generating tax

revenue under the Medical Marihuana Act (MMA).

In general, the sale or use of marihuana is taxable because it does not qualify for a prescription

drug exemption under the Michigan Constitution,' the General Sales Tax Act 2 or the Use Tax

Act. 3 However, under the MMA, a caregiver's compensation for costs associated with assisting

a patient in the medical use of marihuana does not constitute a sale of a controlled substance.4

The MMA re-characterizes what might otherwise be a taxable sale of tangible personal property

as a non-taxable caregiver service.

Some states, such as Colorado, Rhode Island, New Jersey, California and Maine, have stateregulated

retail stores or dispensaries. States that have dispensaries use them as an enforcement

mechanism to directly monitor sales. In most of these states, the dispensaries are also required to

be non-profit organizations with the usual reporting obligations to the state agency charged with

oversight of corporations. In these states, the medical marihuana laws narrowly proscribe the

types of persons that can engage in medical marihuana transactions and provide various agencies

with either direct or indirect avenues for oversight.

The MMA does not authorize either a regulatory or enforcement role for the Department of

Treasury. Further, the MMA is administered solely by the Michigan Department of Community

Health which is prohibited from releasing patient or caregiver information from the registry. The

MMA does not provide for state-regulated retail stores or dispensaries. Finally, as noted above,

the MMA specifically states that the transaction between a caregiver and a patient is not a sale of

the medical marihuana.

430 WEST ALLEGAN STREET • LANSING, MICHIGAN 48922

www.michigan.gov/treasury • (517) 373-3200

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awesome! so what does this exactly mean? cheaper meds?

LOL it . Where it states A caregiver and A patient reinforces the right of the caregiver to be compensated without penalty such as places like the Farmers market. It does not state a caregiver must be compensated only by his/her patient. One more for the good side!

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