Nov 232015
 November 23, 2015

indoor marijuana gardenThere is a saying out there that ‘all politics is local.’ When it comes to marijuana politics, that’s especially true. Municipalities can either embrace marijuana businesses, or do everything that they can to preven them, even in states where marijuana businesses are legal. In my state, Oregon, there are large parts of the Eastern part of the state that have opted out of allowing marijuana businesses, even though Oregon has legalized both recreational and medical marijuana.

In New York, where there was a very hard fought battle to get one of just a handful of medical marijuana business licenses, marijuana companies are running into issues with local governments. Even though the companies were awarded licenses at the state level, the municipalities where their companies were planning on opening have stated that they will not be allowed to do so. Local governments can put huge monkey wrenches into marijuana business plans.

A company seeking to open a cultivation facility in Maryland seems to be very aware of that fact, which is probably why they offered the local town where they want to open the facility part ownership in the venture. Per Marijuana Business Daily:

When Harvest Inc. announced that it offered the tiny town of Hancock, Maryland, a 5% stake in a cultivation facility it hopes to open there, a few eyebrows went up.

Some observers called it innovative, saying the move could serve as a blueprint for companies trying to win medical cannabis licenses. Others equated it to a bribe, saying the company is looking to gain an unfair advantage in the licensing process.

In any event, town officials accepted the deal in early October after having lawyers sign off on the legality of the offer.

As a result, Harvest - a cannabis dispensary and cultivation company based in Arizona – was able to include the arrangement in the company’s application for one of 15 grower licenses that the Maryland Medical Cannabis Commission will eventually award.

This is not the first time that a local government jumped into the marijuana industry. Cannabis Corner, located in North Bonneville, Washington, is a recreational marijuana store owned and operated completely by the town of about 1,000 people.

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  8 Responses to “Maryland Town Accepts Offer For 5% Ownership In Marijuana Cultivation Facility”

  1.  

    Genius, very innovative and helpful for this town. Who cares if it is an ulterior motive to win a license to grow. We all know it will benefit the patients the most. Good on ya Hancock! Please help my wounded state of WV, we need a mmj program ASAP!!! I care about all mmj patients and all people who desire to be mmj patients and am TOTALLY FINE w/recreational but let’s take care of the suffering of patients who want and need an alternative to opioid so-called remedies.

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      Why should herbal cannabis consumers have to enrich the local government more than everyone else?

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        We shouldn’t have to but we have to “Play the Game” until we gain better traction in our great plight. Incremental steps are better than nothing.

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          The poor will go to jail for buying from cheap illegal sources.

          The rich will stay out of jail by buying from expensive legal sources.

          This is considered an improvement.

  2.  

    What did Kevin Sabet say?

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      Critisizing cartelization is not to be equated with the nonsence that comes out of Kevin Sabet’s mouth. Kevin Sabet wants to deminize herbak cannabis and force users into mandatory treatment. Cartelization financially steals from herbal cannabis users.

      In practice communist type policies are the opposite of what the claims are about the benevolent nature of state run everything.

      It is a waste to have the government involved in the cannabis industry at all besides collecting regular income taxes.

  3.  

    Well the cartelization of the cannabis business continues. Very clever of the cartel to give the city a stake in ts business.

  4.  

    We have a society which benefits from modern infrastructure, therefore some taxation is necessary. However, double taxes and sin taxes are wrong. Those who evade taxes while the rest of us pay are basically like panhandling thieves. Many of them are not in dire need of the financial boost they get from evading taxes, but are rather the worst type of parasitic entitlement types who probably complain about bumpy roads while refusing to help fund roads. Wanting to go skiing does not qualify as being in dire need. Tax evaders are basically taking food from hungry mouths and holding our society back from being able to fully realize modern technology such as top tier infrastructure.

    When a local government tries to restrict cannabis, those being restricted upon ought to be able to sucessfully sue. Ideally we would have people in local authoritative positions who were not hypocritical pseudo puritans and white collar criminals who advocate for wasteful restrictions in the first place.

    Ideally the federal government would enforce the constitution redundantly and ban any restrictions on the opening of cannabis stores. Anyone advocating for any restrictions on cannabis whatsoever ought to be investigated for white collar crime and then taken to task and forced to pay the back taxes they likely owe. The vast financial inefficiencies associated with the restrictions on cannabis are unacceptable, particularly in a time of huge national debt and a currency which has fallen tremendously.

    The people who are opening the stores are coming out into the open and are going to be paying regular income taxes on their profits. That fact alone should make the government not want to restrict the opening of cannabis stores at all. There should be no double taxing and no sin taxes, as doing so will ultimately lead to more continued parasitization in the form of evading regular income taxes. This all could be a big gain in efficiency if the repeal of prohibition was not replaced with a lie based system of restrictions. Ultimately the puritans benefit from any restrictions at all being placed on cannabis.

    Does this indicate that the company will be making enough profits to give some of them away to the municipality, or will the loss of profit from the company’s perspective be passed onto the herbal cannabis consumers? Either way, you could look at this as a type of sin tax.

    It is good that there will be storefronts, because even with unrestricted self provision encouraged there will still be some demand for retail sales. It is bad that free market forces will be excluded from that town in Maryland, because they will miss out on the benefits of free markets such as efficiency and competitive pricing and selection to some extent.

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