semicaregiver Posted January 24, 2018 Report Share Posted January 24, 2018 The State of Michigan Treasury department just issued a tax advisory statement indicating that the Patients of Caregivers should pay a 6% "use" tax on the product they get from their caregiver. Seems totally wacky since their is no legal way for Treasury to identify who is a patient. That said I wonder how twisted this could become given an overage prosecution. Imagine a scenario where a caregiver tries a section 8 defense and claims they had more than 2.5z since their patient needed more. Prosecutor then asks patient to produce records on how much tax they paid. http://www.michigan.gov/ documents/treasury/RAB_2018-2_ Marihuana_611377_7.pdf zapatosunidos 1 Quote Link to comment Share on other sites More sharing options...
t-pain Posted January 24, 2018 Report Share Posted January 24, 2018 4a/b card protects penalty in any manner (penalty for not paying taxes) and then 7e , tax is inconsistent with mmma and thus does not apply. Wild Bill, zapatosunidos and Easy E 1 2 Quote Link to comment Share on other sites More sharing options...
semicaregiver Posted January 25, 2018 Author Report Share Posted January 25, 2018 Zap, I like your argument, but not sure where anywhere in the MMMA there is a protection from being required to pay a "use" tax. They seem to have taken the commercial law as establishing the idea that mmj is a "sales" taxable item. Then they have equated a patient's use of mmj to your buying a "taxable" item online where you did not pay any "sales" tax. While you were not charged a sales tax by the seller, you now owe Michigan a "use" tax. Quote Link to comment Share on other sites More sharing options...
bax Posted January 25, 2018 Report Share Posted January 25, 2018 (edited) the same part of the MMMA that says you dont have to pay a $10,000 fine for marijuana is the part that protects you from paying a tax on marijuana. its also the part of the MMMA that protects you from driving with any marijuana in your system. or the part of the MMMA that protects you from a city ordinance saying you cant grow in your city, or you have to register in your city, or you have to let the city inspect your grow. its a catch-all protect-all line in the act to protect patients and caregivers from these kinds of things. it looks like the treasury department either did not read the MMMA fully, or did not ask for legal consult on the MMMA case law before publishing this bulletin. if anyone is out there reading this, keep quiet until they release that form 5098. i want that form... Edited January 25, 2018 by bax Quote Link to comment Share on other sites More sharing options...
AmishRnot4ganja Posted January 25, 2018 Report Share Posted January 25, 2018 The Republican Party has lost their collective mind. It had to happen. Emotion and religion has run smack up against reason and logic. Reason and logic appear to be winning in the Great Cannabis War. Let's see if they win in the next election cycle. Quote Link to comment Share on other sites More sharing options...
bobandtorey Posted January 25, 2018 Report Share Posted January 25, 2018 2 hours ago, bax said: the same part of the MMMA that says you dont have to pay a $10,000 fine for marijuana is the part that protects you from paying a tax on marijuana. its also the part of the MMMA that protects you from driving with any marijuana in your system. or the part of the MMMA that protects you from a city ordinance saying you cant grow in your city, or you have to register in your city, or you have to let the city inspect your grow. its a catch-all protect-all line in the act to protect patients and caregivers from these kinds of things. it looks like the treasury department either did not read the MMMA fully, or did not ask for legal consult on the MMMA case law before publishing this bulletin. if anyone is out there reading this, keep quiet until they release that form 5098. i want that form... Its also the part of the MMMA that protects you from driving with any marijuana in your system, or the part of the MMMA that protects you from a city ordinance saying you cant grow in your city, or you have to register in your city, or you have to let the city inspect your grow. Don't get me wrong here i do agree with the above but i've been to a lot of people court case's for those charges and it's still going on Quote Link to comment Share on other sites More sharing options...
Restorium2 Posted January 25, 2018 Report Share Posted January 25, 2018 The only way someone has to pay tax is if someone else tries to officially declare it as a write off. There's no tax between parties who keep their business completely to themselves. As it should be with the medical cannabis model of a caregiver with up to 5 patients. It's supposed to be anonymous. Don't bust moves with cannabis $$ to get a write off. It's stupid and it's not worth it. Quote Link to comment Share on other sites More sharing options...
John Dutcher Posted January 25, 2018 Report Share Posted January 25, 2018 How are they going to enforce this??? what if someone says; I did not get compensation for the product, my patient is ill and I give them the product they need, the burden of proof would be theirs( police, treasury) then , would it not??? Quote Link to comment Share on other sites More sharing options...
semicaregiver Posted January 25, 2018 Author Report Share Posted January 25, 2018 First, let me suggest that the basic concept of Treasury collecting a 6% use tax from people who they have no way of identifying (protected registry) makes the basic discussion similar to discussing "how many angels can dance on the head of a pin". That said I still think that there is a potential for collateral sh.t we never thought of down the road. Quote Link to comment Share on other sites More sharing options...
GregS Posted January 25, 2018 Report Share Posted January 25, 2018 The first rule in using cannabis, superior to all others, is that you do not tell anyone anything they don't need to know. Easy E and blackhorse 2 Quote Link to comment Share on other sites More sharing options...
Easy E Posted January 25, 2018 Report Share Posted January 25, 2018 Another article about this: https://www.ganjapreneur.com/michigan-treasury-patients-must-pay-6-tax-on-products-bought-from-caregivers/ MI NORML says: "We have identified several problems with the new policy and we plan to fight this policy all the way through the Michigan Supreme Court if that’s what it takes to overturn this ill-conceived policy reversal. Until this gets straightened out, we are urging patients and caregivers to be extra careful during transactions. Even if this policy somehow remains in effect, it is not retroactive and will not apply to your 2017 taxes. Please be patient and we will continue to keep you informed as new developments become available. — Michigan NORML, on Facebook" Quote Link to comment Share on other sites More sharing options...
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