City should consider a cannabis tax

But there could be one exception.

Amendment 3, approved by voters on Nov. 8, set the sales tax for recreational marijuana at 6% with the proceeds earmarked for veterans, expungement expenses, public defenders and drug treatment. It’s a surprisingly low rate when compared to other states, like Colorado and California, where the tax on marijuana can exceed 30% when it’s all added up.

But there is one provision in the language of Amendment 3, a 39-page document with plenty of small print and surprises, that allows voters in cities and other political subdivisions to add an extra 3% local tax to marijuana sales.

A city like St. Joseph could use a higher marijuana tax to address both general community needs and any of the consequences of increased cannabis use, like impaired driving or workplace accidents and absenteeism. Just like tobacco tax revenue is used for public health programs, a local marijuana tax could be utilized to counter the effects of increased usage among the young.

A higher tax on marijuana also has the benefit of increasing the cost of recreational marijuana, which creates less of an incentive to divert legal cannabis to the illegal black market. One issue that was overlooked in the Amendment 3 campaign is how the black market still thrives in California, Colorado and other states that already have tried legalization.

If you don’t like Amendment 3, too bad. It’s enshrined in the constitution so that communities have few options other than dealing with it and managing the new reality.

But a higher tax rate on recreational marijuana would help blunt some of the impacts. It’s something that many communities, including St. Joseph, should consider.