Medical Marijuana's Eco Boomtown

For years, Humboldt County has enjoyed the benefits of a booming underground economy. But changes to state laws -- such as the passage of Proposition 215 in 1996, when voters approved the medical use of marijuana -- mean that many engaged in cultivation and sales are trying to follow state medical marijuana laws. Or at least some of them are making an effort, and in doing so are pouring money into local and state tax coffers.

Long-time local activist Martha Devine, also known as "Granny Green Genes," says that the economy of Humboldt County "would have ceased to exist a long time ago without it. This county was built on marijuana."

(Mary Spicuzza/ABC)

The City of Arcata declined to disclose specific taxes paid on medical marijuana sales by local businesses, calling that "proprietary information." But the city's finance director, Janet Luzzi, said one dispensary in town is among Arcata's top 25 producers of sales tax, and has been for several quarters.

"It's not always there," Luzzi said. "But it's often there."

Other medical marijuana dispensaries, however, recently received written reminders from Luzzi.

"Not all of them were paying taxes," she said.

And taxes aside, most here acknowledge marijuana sales have for years contributed to county finances.

Related

Marijuana McMansions

Business News: Sign Up for MONEYScope E-Mails

Massive Campus Drug Bust Nets 96 People

Vocal medical marijuana advocate Martha Devine was sitting on a park bench in the flower-lined Arcata Plaza, near a large circle of people kicking around a hacky sack and dozens of dancers. A steel drum band was playing for an enthusiastic crowd, and shoppers were wandering in and out of stores.

"The economy of Humboldt County would have ceased to exist a long time ago without it," said Devine, glancing around the plaza. "This county was built on marijuana."

Devine, who's known to some here as "Granny Green Genes," said this place was a ghost town when she arrived in Humboldt 32 years ago. She's witnessed the decline of the county's other traditional industries, like timber and fisheries, and believes marijuana is largely responsible for Humboldt's progressive culture and thriving businesses.

"I think it's really kept our economy going," Devine said.

While Devine acknowledged that Humboldt's cannabis cash crop has brought in the bad with the good -- things like harder drugs and guns -- she said she hopes medical marijuana will help the industry fight the negative aspects associated with black (or even gray) market economies.

She said she does not have a medical marijuana ID card "at the present time" but believes many ill members of the community have benefited tremendously from their "medicine."