Online taxes, industrial hemp, medical marijuana

Thursday, July 5, 2018

This week I would like to discuss a couple of things that have been in the news and give you a break from property taxes. I would like to touch on the recent U.S. Supreme Court ruling that deals with sales taxes on items purchased on the internet, as well as, talk about industrial hemp and medical marijuana.

The U.S. Supreme Court recently ruled that states may collect sales tax on purchases made on the internet. I have always supported this and have voted accordingly in the Legislature. I always felt it is a matter of fairness with our local retailers who have always had to collect and remit sales taxes. A 5 percent to 10 percent difference in price may be enough to change consumers buying patterns. As for immediately implementing this, it is not so easy. There are still a few questions left by the Supreme Court ruling that we must answer before we proceed with changing our statutes.

We will have an exemption for a small retailer who must meet a minimum number of transactions before being required to collect and remit. That number has not been established in Nebraska yet. As for directing the additional revenue, we really have no way to track this revenue coming in.

We are hoping it will be upwards of $30 million for the state but there is no way to know for sure what would have been remitted anyway and how much is “new” revenue. So making statements like it should be directed solely toward property taxes is a bit misleading at best. Not that I disagree with that use of the additional revenue.

Industrial hemp and marijuana are two completely different plants. Industrial hemp would be a good alternative crop for the farmers in Nebraska. It can be used to make many different products and would certainly be a way to diversify a farming operation. Industrial hemp contains very little of the chemical THC that can make you high. Anyone trying to smoke it will soon just have a headache.

Marijuana, on the other hand, can be very potent and is a different looking plant being both shorter and bushier. The proponents of marijuana will say it will be good for farmers in Nebraska. But if you look at other states who have legalized, medical or recreational marijuana, the “farmers” are large companies who grow indoors under strict guard and growing conditions.

Marijuana is not a crop that Nebraska farmers will grow. You cannot hide marijuana plants in a field of industrial hemp because it will cross-pollinate and make the marijuana plants useless. I believe there still hasn’t been significant research done on the effectiveness of medical marijuana, I don’t believe it is the miracle plant that some people would try to make you believe. It is possible the federal government will reclassify CBD so drug manufacturers can produce and sell products that have gone through FDA testing. All of us would like to get medications into the hands of those who suffer from seizures but we must make sure that these products are safe.

I always enjoy hearing from the Nebraskans I represent. Please feel free to contact my office with any questions or concerns that you might have. My email address is dhughes@leg.ne.gov and my phone number is (402) 471-2805.You can read more about bills and other work of the Legislature at www.nebraskalegislature.gov, and you can click on the Live Video Streaming NET logo to watch sessions, hearings, and other Capitol events.

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