Congressman Pete Stark Aims to Save Medical Marijuana Dispensaries Big Bucks

As if raids from gun-toting Drug Enforcement Agency agents weren't enough to make stoners paranoid, California's medical marijuana clubs can also be shut down real fast by the IRS.

That's because the Internal Revenue Service has declared that California's legal medical cannabis collectives can not deduct the price of marijuana from their federal taxes; that's unlike every other merchant in the country — deductions for goods sold is the only way to do business.

But for once, it looks like pot clubs and their dependent patients have a friend in, uhh, high places. United States Congressman Pete Stark, (D-Fremont) introduced legislation on Wednesday that would amend the tax code and allow pot dispensaries to deduct the price of medical marijuana on their federal tax forms.

“While unfair to these small business owners, the tax code also punishes the patients who rely on them for safe and reliable access to medical marijuana prescribed by a doctor,” Stark says.

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