To help offset some of the cost of operating the Hawaii medical marijuana program, lawmakers are considering adding a tax to purchases. Hesitance comes from those fearing that it will make the medicine too expensive for patients. Chair of the House Health Committee, State Representative Della Au Belatti, supports the proposed “Use Tax.”
Lawmakers have not determined a specific tax rate to discuss yet, according to Hawaii News Now. Some lawmakers argue that it is medicine and should not be taxed. Medical marijuana still isn’t covered by any health insurance provider.
Belatti said, “We need to have that conversation because we know that there are associated costs with standing up the medical marijuana program. There is a delicate balance that we’re trying to strike.”
Blake Oshiro of Hawaii Educational Association for Licensed Therapeutic Healthcare said, “There’s a lot of built in cost into the infrastructure and making sure we have the perfect product safety, public safety, and the patient safety. Once you start tacking on some additional fees and taxes, at that point some of that may end up getting borne by the qualified patients.”
Some lawmakers say that the tax is needed as major agencies, such as the State Tax Department, are requesting large sums of funding. The State Tax Department has requested $600,000 for security improvements and additional staff. Additional staff will be required to handle all of the cash coming in for tax payments.
State Tax Department spokesperson Mallory Fujitani said, “Marijuana in general is still a controlled substance on the federal level, so they have been limited to no banking services. We expect that they will pay all their taxes in cash.”
Fujitani also said, “We need additional guard service as well as armored car service. And our cameras and our door access, just controls with inside the building for the safety of our employees.”
A security consultant was hired to help make improvements in the security system.
Fujitani closed her comments by saying, “The public should not be afraid of this coming change, and our objective is to make this as seamless as possible.”