Philly420: Taxing Pa. medical marijuana the wrong approach

Something that was almost overlooked in the compassionate-use legislation that already passed in the state Senate is a serious up-charge to seriously ill residents. SB3 already includes a 6 percent "surcharge "on medical marijuana products.

Now the House is considering a tax. Rep. Ron Marsico (R., Dauphin) has proposed having medical marijuana fees and charges funneled into substance abuse treatment.

Deb Beck, president of the Drug and Alcohol Service Providers Organization of Pennsylvania, testified before Marsico during a joint information gathering hearing by the House Health and Judiciary Committees in April. Her group denounced efforts to legalize medical marijuana and decriminalize recreational marijuana.

Marsico has since proposed that the Department of Drug and Alcohol Programs administer the marijuana program. SB3 sought to create a separate state entity, a Medical Cannabis Board, to oversee medical marijuana. Marsico claims that he is against additional "bureaucracy" in his attempt to put the issue under the purview of those who are dealing with alcoholism and gambling addiction.

So it seems the Pennsylvania drug treatment industry might be on board with cannabis therapy – but only if they have control over it and they get a piece of the cash pie.

A working group formed by House Majority Leader Rep. Dave Reed (R., Indiana) is meeting over the summer to hammer out a new bill for the lower chamber.

As Pennsylvania state legislators continue their effort to reach consensus on a medical cannabis bill, the proposed extra costs should be reconsidered.

A vital point: Right now, medicine is not taxed in the Keystone State.

Prescriptions for penicillin and over-the-counter medications like ibuprofen are tax-free. Even acne cream isn't taxed. That's likely why the additional fee is called a "surcharge" in SB3; doing so avoids a raft of avoid legal problems.

Keeping costs low for healthcare is a national issue. Most states do not tax medication. With the already soaring prices of pharmaceuticals, there is no reason to force sick people to pay even more in the moment of their greatest need.

The same should be true for medical marijuana.

New Jersey was one of the first states to tax medical cannabis. Gov. Christie who, ironically, holds himself out as an anti-tax politician, personally insisted upon the extra fee for patients.

The result is that the Garden State now supplies the most expensive medical marijuana in the country. At more than $500 per ounce, it is just too costly for most seriously ill patients. Low-income patients can find the same quality and a far better value in the underground marijuana market. At the exorbitant price, there is simply no incentive for patients to participate in the N.J. program. This has also meant discouragingly low patient-registration numbers.

The Pa. House representatives also want to severely limit the number of cannabis providers. SB3 would have licensed 130 locations for growing, processing and distributing medical marijuana. The House is proposing just five. Fewer facilities mean little competition and inevitably higher prices.

Legislators must consider  that patients who will register for cannabis are already shouldering a heavy burden of costs related to their medical care. Those with HIV/AIDS, cancer, seizure conditions and chronic pain are often on the brink of bankruptcy dealing with their health. Asking patients to pay an extra premium for cannabis does not follow the spirit of safe access laws in any regard.

The state and the local drug-treatment industry should not be looking at our most vulnerable residents as a new cash cow.

There is only one conversation that makes sense when you put the words "marijuana" and "tax" into the same sentence: full, recreational legalization.

Washington state regulators released data last week on the first full year of legal marijuana sales there. The numbers are certainly promising. More than $250 million was sold through licensed retailers and the state collected $70 million in taxes.

The number of youth using marijuana there reportedly has remained unchanged; crime has not gone up nor have traffic incidents.

The same is true in Colorado. During 2014, the Golden State brought in more than $76 million in taxes. In January 2015 alone, the Colorado weed tax netted $2.3 million for public schools.

Cannabis businesses are expanding in both states, adding thousands of jobs. Real estate values have increased. And - surprise! - college applications are also up in Washington and Colorado. The underground market in those states has not disappeared, but the transition was not expected to happen overnight or even in a single year.

Those states have about half the population as Pennsylvania. As the General Assembly here continues to deadlock on the budget, it is apropos to point out that marijuana prohibition is costing us $300 million per year. About $100 million is spent on enforcement, and we could be leaving $200 million (or far more) on the table in potential tax revenue.

When it comes to marijuana we should never tax (or surcharge) patients, but we should definitely be taxing cannabis consumers. The "wait-and-see" stage of the legalization experiment is over.

Chris Goldstein is associate editor of Freedom Leaf magazine and co-chair of PhillyNorml. Contact him at chris@freedomisgreen.com.