Tax exemption on medical marijuana sales within Jeff Davis rejected

Published 10:45 am Thursday, May 11, 2023

The Jeff Davis Parish Police Jury approved a resolution Wednesday opposing the local sales tax exemption on medial marijuana sales within the parish.

Currently, Louisiana law provides for state sales tax on the sale of medical marijuana, but does not provide for parish sales taxes when dispensaries sell to the public, according to Police Jury President Steve Eastman.

“The issue is we are going to have to provide fire protection, police protection and all the other services that go with what it takes to maintain the roads, etc., yet we are not going to get any local sales tax from it,” Eastman said. “It’s nothing against the medical marijuana, it’s just the fact that we are having to provide services, but not getting any sales tax.”

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In reading the resolution Eastman further stated, “The dispensaries selling medical marijuana within the parish will utilize the parish’s infrastructure, safety services such as the sheriff and fire departments, emergency services in the case of disaster, and otherwise benefit from the parish government’s efforts and expenditures, but would not contribute any sales tax funds from their operations in the parish.”

It is inequitable for other businesses and citizens in the parish to fund the government infrastructure and services, medical marijuana will use, but not fund, he said.

Police jurors voting to oppose the exemption of parish sales tax on the sales of medical marijuana were John Marceaux, Marcus Peterson, Tim McKnight, Melvin Adams, Wayne Fruge, Byron Buller, Owen Cormier and Chad Talbot.

Police Juror Butch Lafarge voted against the resolution.

“I am opposed to medical marijuana, or any medicine, being taxed because people struggle to pay for them and it is expensive,” Lafarge said after the meeting.

Police jurors Donald Woods, Kori Myers and Curt Guillory were absent.

A copy of the resolution will be forwarded to local legislators.

The Police Jury’s action comes just weeks after Jennings Mayor Henry Guinn denied a building permit request for a temporary satellite marijuana pharmacy in the city until issues can be resolved with the state on how sales tax revenues are handled.

Medicis, who has acquired property just off Interstate 10 at La. 97, recently submitted a building permit to the city to construct the pharmacy. The company also operates a pharmacy in Lake Charles.

At issue is the state’s handling of sales tax revenues generated by the sale of medical marijuana. Guinn said he will continue to deny the building permit until he receives more information on why local governments cannot collect sales taxes on the sales when they have to provide services to those businesses.

The state is currently the only entity receiving revenues on transactions made between the growers and the dispensaries, he said. Transactions between the pharmacy and consumer are exempt because it is considered a prescription drug, he said.