John Suthers Decides Marijuana Is Subject To Taxation

Colorado Attorney General John Suthers has issued a formal legal statement saying that medical marijuana is subject to taxation.

The AP reports that Suthers's statement was based on the conclusion that marijuana does not qualify as a prescription drug:

The opinion issued Monday says only seeds would be exempt from sales tax in Colorado. Otherwise, it would be up to vendors to collect and remit sales tax on other forms.

Suthers says medical marijuana is considered personal property that can be taxed. He says it doesn't qualify as a prescription drug that would be tax exempt, and it doesn't generally qualify for agricultural tax exemptions. Retailers must have a state retail sales license.

The decision, according to the Denver Business Journal, comes "amid confusion about whether medical pot can be taxed since the drug is still illegal under federal law, but permitted for legal medical use in the state of Colorado under a voter-approved constitutional provision, Amendment 20."

The Denver Post cites Courtney Tanning, the executive director of the Colorado Wellness Association--a marijuana advocacy group--in stating that medical marijuana proponents are happy about the decision. Tanning told the Post: "It (medical marijuana) has been an underground, black market community for so long that I think they're really willing to come out and pay dues to be taken seriously."