So You Want to get a Growers license, Let's do the Math

[William Wonder]

The government wants 25% of the retail value of everything you grow. Let's say an Oz goes for $250 retail in the shops. This is where CO prices are at. The government wants 25% of the retail value of your oz which is 62.50. It also wants 25% of the retail value from the processor and 25% of the retail value from the retailer. The government wants 75% of the $250 oz. That leaves $62.50 per oz that must be shared by the grower, processor and retailer. So the grower ends up with about $21 per oz as does the processor and retailer, assuming the margins are cut equally. Now factor in rent or mortgage, property taxes, lights and equipment, utilities, security, grow media and annual license fees and employees and it's going to be real hard to make a profit and if you do, you must pay income tax on that. The mafia isn't even as greedy as the government. The mafia will allow you to make a profit so they can profit on you. Is this what you want? It makes more sense to grow your own 15 plants, make hash out of it and mail it to your cousins in Iowa or Minnesota. The big winners in all this, if there are any, are going to be the processors because of the low overhead, no lights or electricity, no retail space.

 

[SnapsProvolone]

Thought it was only taxed once at retail.

 

[colonuggs]

don't forget the cost of MJ testing and tracking coming out of the growers and processors pockets too


heres link to the mj zoning http://kingcounty.gov/operations/GIS/Maps/VMC/Planning.aspx#8BC00699E2444F42913673389F290809 notice production and retail is only in the small pink areas ....

you can't just process at home.....you have to have business address in the pink


Pierce County has outright banned Marijuana

 

[bigdaddycatfish4]

that is insane,why be so greedy? think along the lines of prescription medication, they dont tax oxycotin, morphine,xanax,ect.. so why be so harsh on the marijuana? its just plain ridiculose

 

[colonuggs]

there is a way not to pay retail tax on your mmj.... mandatory patient registry.... invasion of privacy saves 9 % on your purchases

 

[colonuggs]

Thought it was only taxed once at retail.

no no no they are taxing at each level of production

 

[SnapsProvolone]

no no no they are taxing at each level of production

Gotta see that in legalese. I find it hard to believe.

 

[SnapsProvolone]

http://dor.wa.gov/content/getaformorpublication/publicationbysubject/taxtopics/medicalcannabis.aspx

the state of Washington, sales of medical cannabis are retail sales.* As such, the selling price is subject to retail sales tax.* In addition, the seller is subject to the business and occupation (B&O) tax under the retailing classification. **This is true even if it is sold by a medical cannabis dispensary.Sales of medical cannabis are not eligible for the retail sales tax exemption provided for prescription drugs.* *RCW 82.08.0281 provides an exemption from retail sales tax for certain drugs, but only when prescribed as authorized by the laws of this state.* However, cannabis is a Schedule I controlled substance and cannot be prescribed under either federal or state law in Washington.*Chapter 69.51A RCW addresses medical cannabis, but does not authorize the prescription of medical cannabis.* This chapter specifically avoids authorization of a prescription by referring to “valid documentation”, which does not equate with a prescription as defined in RCW 82.08.0281(4)(a), or as provided in RCW 69.50.308 (Prescriptions).* Chapter 69.51A provides that it is only intended to protect qualifying patients, designated providers, and physicians from liability, prosecution, or criminal guilt when cannabis is possessed, used, provided or authorized.*See our Special Notice -*Sales of Medical Cannabis Remain Subject to Sales Tax*(pdf)

Not seeing it there.

 

[colonuggs]

wheres that video of the meeting in Olympia they list the in the recommendations

 

[SnapsProvolone]

Not watching videos. Only reading laws. Reading the bill I suppose is required. But alas not spending my weekend like that.

 

[NorthofEngland]

there is a way not to pay retail tax on your mmj.... mandatory patient registry.... invasion of privacy saves 9 % on your purchases

There's another way, also.
Good old fashioned CRIME!

The more I read what's happening in America, the happier I am I live in a backwards nation.
It's the 'risk' that brings me 90% of my profits.
If I wanted to compete for pennies I'd run a corner shop and sell sanitary towels and tins of beans....
Then I'd commit suicide and take a chance on rebirth.

Doing the occasional sentence is better than a life spent scraping together pennies!

 

[NorthofEngland]

http://dor.wa.gov/content/getaformorpublication/publicationbysubject/taxtopics/medicalcannabis.aspx

the state of Washington, sales of medical cannabis are retail sales.* As such, the selling price is subject to retail sales tax.* In addition, the seller is subject to the business and occupation (B&O) tax under the retailing classification. **This is true even if it is sold by a medical cannabis dispensary.Sales of medical cannabis are not eligible for the retail sales tax exemption provided for prescription drugs.* *RCW 82.08.0281 provides an exemption from retail sales tax for certain drugs, but only when prescribed as authorized by the laws of this state.* However, cannabis is a Schedule I controlled substance and cannot be prescribed under either federal or state law in Washington.*Chapter 69.51A RCW addresses medical cannabis, but does not authorize the prescription of medical cannabis.* This chapter specifically avoids authorization of a prescription by referring to “valid documentation”, which does not equate with a prescription as defined in RCW 82.08.0281(4)(a), or as provided in RCW 69.50.308 (Prescriptions).* Chapter 69.51A provides that it is only intended to protect qualifying patients, designated providers, and physicians from liability, prosecution, or criminal guilt when cannabis is possessed, used, provided or authorized.*See our Special Notice -*Sales of Medical Cannabis Remain Subject to Sales Tax*(pdf)

Not seeing it there.

So, just to clarify, the possession and supply is legalised (for medical reasons) but the legislature have not defined its supply as 'prescription' so as to be able to tax it...???
Is that right or am I reading it wrong???

 

[SnapsProvolone]

There's another way, also.
Good old fashioned CRIME!

The more I read what's happening in America, the happier I am I live in a backwards nation.
It's the 'risk' that brings me 90% of my profits.
If I wanted to compete for pennies I'd run a corner shop and sell sanitary towels and tins of beans....
Then I'd commit suicide and take a chance on rebirth.
Doing the occasional sentence is better than a life spent scraping together pennies!

You my friend have not seen the inside of a federal prison. Just sayin. Our prisons are really rough. I would not wish that on anyone for growing or tax evasion.

 

[colonuggs]

[HR][/HR] right here the meeting in Olympia Nov. 21, 2013

Washington State Liquor Control Board Public Hearing... min# 42:15 the taxation http://www.tvw.org/index.php?option=...tID=2013111017

What is the first thing that Kathy Ryan with the Deparment Of Revenue states??

Growers, Processors & Retailers will all pay a 25% excise tax on all sales of marijuana on top of normal b&o taxes


So if I have the first 2 licenses get $200 a oz 50% goes to the state plus b&o

 

[SnapsProvolone]

If they sell retail yes.

 

[SnapsProvolone]

Just wait till its in writing as the language will be very detailed and scrutinized.

 

[William Wonder]

If they sell retail yes. Remember the retailer who sells a $200 oz will have to pay $50 in tax. The most he can pay the grower and processor is $125 at most. After your $100 payout it taxes per oz all the grower/processor would make is $25 an oz.

Honestly the way they've set this up is a failure from the get go, with very slim margins of profit for all the players. I suppose one could possibly make it by getting $25 per oz, but your production would have to be huge on the grower side and the sales very high on the retail side. How many retailers only make $25 on a $175 dollar investment per item. Typically markup is at least double or 100% per item.

This is all about the government making booty, and everyone else losing their ass. Now what happens if you get mites on the grower side? You're finished.

Colorado is not any better. All this is going to do is allow the black market to continue and keep prices high to pay government their booty.

This is good for the outlaw who wants to move his medical marijuana grow and get a halfway decent price for it. Under this scheme prices can't fall much.

 

[Cascadian]

This isn't the law as written because it hasn't been written, but this is what the draft recommendation of the WSLCB is and what i502 calls for:

Under I-502:
1. Producers
a. Pay 25% excise tax on wholesale sales
b. Pay B&O tax as wholesaler

2. Processors
a. Pay 25% excise tax on wholesale sales
b. Pay B&O tax as manufacturer

3. Retailers
a. Pay 25% excise tax on retail sales
b. Pay B&O tax as retailer
c. Collect state/local retail sales & use tax

4. Retail Buyers
a. Pay state/local retail sales & use tax

The taxes compound at each level. My understanding is that a producer can also be a processor and only pay tax at the processor level but it will again be taxed 25% at the retail level. A producer or processor cannot have any financial interest in any retail MJ business. So it is possible the 25% tax could only apply twice?
Correct me if I am wrong.

 

[William Wonder]

Now I hear Washington wants to eliminate medical home grows. I suppose the point is sort of moot considering when its legal Jan. 1, when everyone can grow 6 plants is it, indoors? This is the state attempting to monopolize the market. It's like instead of allowing home brewers to brew their own beer and sell it, they want you to buy it in state taxed liquor store instead. These legal states just can't figure it all out, every scheme gives a large amount of booty to the state. Why should the majority of the retail price of an item go to taxes? MJ states need to fight against this. Pot taxed at a high rate is the same as prohibition, it allows a black market and keeps prices high.

 

[mightyBUMone]

Now I hear Washington wants to eliminate medical home grows. I suppose the point is sort of moot considering when its legal Jan. 1, when everyone can grow 6 plants is it, indoors?

No, the public can not grow. Only state licensed operations will be allowed. So rather than provide for yourself, you have to let some dipshit with a lot of money grow it in a warehouse, and then you can buy it from a state store.