State budget gaps are not unique. But Vermont legislators took a novel tack last year to fill a shortfall by using money raised through the state’s medical marijuana program.
That means lawmakers know full well the value of taxing marijuana, but they’ve yet to figure out how to legalize and implement a full taxed-and-regulated system. Instead, legislators have come up with a system that legalizes adult use and possession but doesn’t cash in on potential tax revenue.
The state medical marijuana program fund gets an annual cash infusion, though. The state’s five dispensaries each pay $25,000 annually in licensing fees, while patients pay $50 to register each year, Vermont Public Radio reports.
How useful is that cash? Here’s what Adam Greshin, the state’s finance commissioner, told VPR’s Emily Corwin about the $300,000 lawmakers siphoned from the medical marijuana fund.
“We needed to raise almost $30 million; that is not a small chunk of change,” he said. Greshin added: “We’re not taking this fund and buying luxury items for certain Vermonters. It’s helping to run government which is exactly what happened in this case.”
Go figure.
Here are some other cannabis stories we read from the week that was:
February 12: The Vermont Hemp Company responded to a lawsuit filed by a woman who said the biz’s founder, Joel Bedard, made off with her crop without paying. Spoiler alert: The company called the allegations “unfounded.” [Sasha Goldstein, Seven Days]
February 13: Rick Steves likes weed! Well, he thinks it should be legal, anyway. Read this interview he gave to Dan Bolles. Steves visited the Vermont Statehouse this week and also met up with folks at the Skinny Pancake in Burlington to expound on his vision for cannabis reform. [Dan Bolles, Seven Days]
February 13: A company that wanted to sign up a large number of patients for Vermont’s medical marijuana program has stopped operating in the state. Turns out lawmakers and other regulators weren’t too keen on the business model of Canna Care Docs. [Sasha Goldstein, Seven Days]
February 14: Guess what — law enforcement agencies are unclear on some aspects of the new Vermont law legalizing cannabis. And some drug-sniffing pooches might have to go into early retirement because, apparently, once they train on the scent of marijuana, they can’t get it out of their heads. Who knew? [Mark Davis, Seven Days]
February 15: Cannabis has been shown to help people with epilepsy, and new evidence is emerging that it could also help children with autism and attention deficit hyperactivity disorder. Interesting stuff. [Debra Kamin, Newsweek]
Got a story you want to see in our our weekly roundup? Send an email to cannabeat@sevendaysvt.com.
This article appears in Feb 14-20, 2018.
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No one ever gave the Vermont legislature any credit for having brains. This isnt a heavy lift. You look what other states are doing. Our legislature is perfectly willing to tax the crap out of peoples incomes and property but to raise revenue this way is just too much for them.
My thanks to Sasha Goldstein. Your use of the word “siphoned” is quite accurate. Now the question remains, where did the money get transferred to? Did DPS get the funds returned to fund unrelated expenses?
Get rid of the land trusts and there will be a surplus of funds.
Why on earth are we subsidizing wealthy folks estates?
Wealthy folks who dont even live here full time?
It has been 50 years since marijuana use became popular back in the late 60s, it has taken that long for the powers that be figured out that it should be legal, how much longer before it is legal everywhere, besides reduced prison, court costs, states can benefit if taxed like everything else in this wonderful country that I have been born and raised in, when is the government going to be for the people? Along the way let us get smart about what everyone can benefit from even if you are against it.