The Attorney General of Colorado said yesterday that his state can collect taxes on sales of medical marijuana.
"Medical marijuana is tangible property that is generally subject to state sales tax," Attorney General John Suthers said in an opinion, according to The Denver Post.
Suthers, a Republican, was responding to a query from the state's governor, Democrat Bill Ritter.
"This is another in a series of significant steps toward some sort of legalization of marijuana," said CBS News Legal Analyst Andrew Cohen. "Once local and state officials in Colorado and elsewhere realize how much income they can generate from this tax it will be harder for them or anyone else to argue that pot shouldn’t be legalized and regulated in some fashion."
In response to the opinion, the Post reports, the governor's office says it will direct businesses that offer medical marijuana to obtain retail licenses and begin paying sales taxes.