http://www.record-courier.com/news/20180117/ravenna-eyes-fees-for-marijuana-businesses
Ravenna City Council is considering imposing a $25,000 licensing fee for any medical marijuana-related businesses that might operate in the city after learning that all taxes from such a business would go to the state.
Council’s Community and Economic Development committee recently discussed the potential fee. Councilman Andrew Kluge said Lakewood implemented an identical fee for such businesses. Akron, he said, implemented a fee of $60,000 for businesses related to the new medical marijuana program in the city limits.
Under the state program, the Ohio Board of Pharmacy is issuing licenses to cultivators, processing plants and dispensaries throughout the state.
Geauga County businessman Tom Hobson recently got the green light from the state to open a cultivation business at 4000 Lake Rockwell Road in Ravenna Township. FN Group Holdings, LLC, which is doing business as Wellspring Fields, will be owned by Hobson’s daughter, Claire, and his son, Spencer. The group holds the only cultivation license issued in Portage County, and reportedly applied for a processing license, an application that is pending.
Groups have approached Ravenna City Engineer Bob Finney about operating dispensaries in city limits. Council members implemented legislation to pave the way for such businesses, and some council members expressed hope that the city would benefit from the taxes generated by the new enterprises.
However, officials later learned that the taxes would go back to the state, and the city would have little to gain from such a business locating in the city.
That’s why some cities are implementing licensing fees, reasoning that most medical marijuana businesses have already paid much higher fees at the state level to obtain their licenses. Under Ravenna’s plan, the fee would be charged annually for five years, and could possibly drop in the years after that.
Kluge said the money would go into the city’s general fund. From there, the money can be used toward other purposes, such as drug education.
Councilman Rob Kairis said he doesn’t object to the fee, but thinks talk about drug education misses the point.
He pointed out that Kent is looking at ending its moratorium, and Streetsboro seems to be reversing its proposed ban on the program.
“There is competition out there,” he said.
Councilman Scott Rainone said he read about a similar enterprise out of state that paid a $25,000 fee, but sued when that city raised its fee by $100,000.
“If it’s low enough, they see that fee as the cost of doing business,” he said.
Council President Joseph Bica pointed out that a fee of $50,000 is roughly equivalent to the entry-level salary of a police officer.
Councilwoman Amy Michael said the city should think carefully before deciding how much the fee should be.
“Whatever we go in at, we’re going to be there for a very long time,” she said.
All these bureaucrats can see is a “cash cow”… they are too myopic to see that taxing the crap out of a legit MMJ business will just allow those selling MJ on the street to be able to UNDER CUT the price of the product from the legal distributor… because they have no legal taxes and the cost of permits to the state and any other middleman bureaucracy to pay… Remember there is no education required or previous experience to be an elected or appointed bureaucrat and these bureaucrats in Ohio seem to be clearly demonstrating why there should be.
Filed under: General Problems
Buying from a dispensary I Medford OR is pricey! Just the sales tax is 24%! Street dealers don’t have the overhead that dispensaries have. I choose to pay the extra for safety reasons but with my husband being laid off (52 years of work and this is a first because his new job is seasonal) and the state screwing him out of payments that may have to change. We have to drive over70miles each way which adds to the cost! It’s great to be in a state where mj is legal (for the moment) but the state needs to remember that street dealers undercut the prices so making legal mj so costly is cutting into the number of people who would otherwise be more willing and able to choose dispensaries! I use RSO at a cost of over $200 a month making yet another alternative treatment for pain out of reach for too many of us!!
Drop in the bucket. Average sale in Fl MMJ store will be in $350 range. One store will gross that much in a single day.