November 17, 2009 07:36 PM UTC

Roll It Up, Light It Up, Tax It Up

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• by: Colorado Pols

Given our current mess of a state budget and lack of revenue, this seems to make too much sense. As The Denver Post reports:

In an opinion that could generate more revenue for cash-strapped governments and give additional legitimacy to a fledgling industry, Colorado Attorney General John Suthers said Monday that the state can collect sales tax on medical marijuana.

“Medical marijuana is tangible property that is generally subject to state sales tax,” Suthers, a Republican, wrote in response to a query from Gov. Bill Ritter, a Democrat.

The opinion also said medical-marijuana dispensaries must obtain retail-sales licenses from the state to do business.

Ritter’s administration said it would immediately direct medical-marijuana dispensaries to start paying sales tax and obtain retail licenses.