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Medical Marijuana Inc.
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Medical Marijuana, Inc. is helping to promote the legalization of medical marijuana and the end of prohibition, by providing a payment system that will satisfy government compliance issues as well as the patients. It is the first company in this industry to go public.
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Medical Marijuana, Inc.
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Medical Marijuana Industry Solutions
  • Medical Marijuana, Inc. Signs 1st Medical Marijuana Collective to Use the Tax Remittance Card  0 comments
    May 18, 2009 3:38 PM

    Medical Marijuana, Inc. is happy to announce that it has signed the first Memorandum of Understanding with a marijuana collective in Southern California to use Medical Marijuana, Inc.'s patent pending, stored value, tax remittance card. Bruce Perlowin, CEO of MJNA, says, "This is just the beginning of a massive marketing program to educate the dispensary owners to the benefits of this program. There are close to 1,000 dispensaries in California today that our Master Agents have begun contacting regarding utilizing our card. With 14 states now going through a process to permit medical marijuana in their state, MJNA is set to capture a good piece of this market as states continue to permit medical marijuana. With revenue in the 4% area, and with the average dispensary doing 1 million dollars a year in sales, we project substantial earnings."

    This follows our business plan which includes the Stored Value Card for tax remittance, a merchandising division to promote many of the cannabis related products, clothing lines, distribution, and the testing platform which we hope will standardize the industry with quality control.

    Tax Remittance

    This Stored Value Platform System will provide verifiable solutions for an inter-agency approach to manage the difficult task of Revenue and Taxation Collection for the Emerging Medical Marijuana Industry.

    Using this new invention, the "Point of Sale" System will recognize the dispensary's tax ID number and tax rates for the state and local taxes as well as provide "Automated Clearing House" (NYSE:ACH) settlement of the taxes to the proper financial institutions.

    Taxability of Medical Marijuana Transactions

    In February 2007, the California State Board of Equalization (NYSE:BOE) issued a Special Notice confirming its policy of taxing medical marijuana transactions, as well as its requirement that businesses engaging in such transactions hold a Seller's Permit. According to the Notice, having a Seller's Permit does not allow individuals to make unlawful sales, but instead merely provides a way to remit any sales and use taxes due. BOE further clarified its policy in a June 2007 Special Notice that addressed several frequently asked questions concerning taxation of medical marijuana transactions.

    Solutions

    Plastic debit cards or medical revenue cards are supplied to the Medical Marijuana Dispensary (or Collective/Co-op as they are legally designated in California). The customers of the dispensary are issued the closed loop "Stored Value Card" (SVC). This "Stored Value Card" (SVC) is loaded for the customer by tendering cash to the Dispensary clerk. The Dispensary clerk will load up the new card for the customer using the "Point of Sale" (POS) System which will also recognize the dispensary location, as well as tax rates for the appropriate government agencies.

    Advantages

    The ease of access to certifiably secure transactions lessens the risk of loss at each level of the transaction. Users and operators are empowered and Government Agencies are more confident in assuring their collection of taxes and fees while secure in the function of financial interactions.

    Dispensary Owners are more comfortable knowing all transactions are made with a stored value card. This reduces the losses associated many times with cash transaction businesses.

    MJNA conducts daily conference calls to its Master Agents that are engaged in offering the provisional patent, tax remittance, stored value card to dispensaries and co-ops in California and other states where medical marijuana is, or soon may be, legal. The conference calls explain the tax remittance card in regards to how it works as a solution for the taxing of medical marijuana and the numerous other features inherent in this technology.

    For anyone interested in listening in, and asking questions on how the tax remittance card works, you can do so any day this week at 4:20 PM California time, calling the conference line via: 218-339-3600 PIN: 321677#.

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