Tax us PLEASE: Marijuana Industry Pleads to Capitol Hill

"Tax us PLEASE"

That's the message that the marijuana industry and their backers want the federal government to hear. Since marijuana remains illegal under federal law, Washington's newly legalized marijuana industry wants the federal government to consider taxing it like alcohol and adding billions to the federal treasury. Not a bad proposal for a government looking for some extra cash. They're also hoping to cash in on some much-needed federal tax deductions in the process. 

The marijuana industry wants to be treated like every other legitimate business. They want to tax their product and take tax deductions for income like other small businesses. The idea is gaining momentum on Capitol Hill and has many legislators salivating over the extra revenue that taxing legalized marijuana could yield.

In the House of Representatives, there are already two pieces of legislation pending. The first would legalize marijuana, tax it, and regulate it nationally. Unfortunately, most in Washington do not expect this to pass anytime in the near future.

The other bill is called the Small Business Tax Equity Act and this would allow the IRS to give marijuana businesses some much-needed breaks on federal income taxes. If it passes, they could deduct their rent and other business expenses from federal taxes.

Marijuana advocates argue that if marijuana businesses are not treated like other businesses across the United States, then they are doomed to fail.

Since Attorney General Eric Holder has yet to announce how the federal government will respond to states like Washington who have legalized marijuana, marijuana sellers, growers, and distributors risk prison sentences or having their assets seized. In fact, federal DEA agents raided four medical marijuana dispensaries in Washington just last month.

“There’s not really any other industry in the country – let alone one that can bring in tens of billions of dollars in tax revenue – that’s standing up and raising its hand and saying we’re ready to step up to the plate and help the country solve its problems, but we are. We hope that Congress will hear us.

---Steve DeAngelo, Executive Director of the Harborside Health Center Marijuana Dispensary

Washington State Braces for Possible Federal Lawsuit

It has been six months since Attorney General Eric Holder told us that the Justice Department's response to Colorado and Washington's legalization of marijuana was coming soon.  No word has been received yet, so the State of Washington is preparing for the worst-case scenario: a federal lawsuit.

Washington Attorney General Bob Ferguson has said that they are preparing for a federal lawsuit while at the same time moving forward with implementing the new legalized marijuana law. The regulatory framework is being finalized and should be finished by the end of the year. Rules are being worked out and everyone has been hard at work determining when and how to issue licenses to growers, distributors, and sellers.

The police in Seattle even got in on the mix when they handed out bags of Doritos to thousands of citizens who attended Hempfest this past weekend.

"We have a legal team, and I've asked them to prepare for a worst-case scenario, which would be a lawsuit. Again, we want to avoid that. I communicated that to Eric Holder earlier in the year, but we want to prepare for whatever eventuality may come along."

                                    ---Bob Ferguson, Washington Attorney General

Until the federal government responds to Washington's legalized marijuana law, the state will continue moving forward to uphold the will of the voters. Will Washington D.C. respect states' rights to legalize marijuana or will they dig their heels in and continue to fight? While no one knows for sure—we'll be prepared just in case. 

Seattle Cops will be Passing Out Doritos NOT Tickets at this Year’s Hempfest in Seattle

Hempfest celebrates its 22^nd year on Seattle’s waterfront and this year is going to be a whole lot different. Since Washington and Colorado became the first states to legalize marijuana by adults over the age of 21, Seattle police officers were left with the question of what to do all day during this event. The answer was simple: instead of passing out tickets or making arrests, the Seattle police will be at Hempfest handing out Doritos.

The Dorito promotion is a funny way for the Seattle police to get involved and help spread the message about legalized pot. Each bag of Doritos will have a label on it urging people to check out the website: “Marijwhatnow? A Guide to Legal Marijuana in Seattle”. This guide will help explain the laws and what is considered illegal in the state. Currently, while it is legal to possess up to an ounce of marijuana, adults are still not allowed to sell it or give it away, and driving under the influence of pot is still a crime. In addition, with the exception of festivals like Hempfest, public consumption of pot is also against the law.

Organizers of Hempfest expect as many as 85,000 people every day of the three-day event, which starts today! While the event is free, Hempfest director is asking for a $10 donation to help offset the costs associated with Hempfest and to ensure that it continues in the future.

In addition to legally getting high, participants at this year’s Hempfest will be treated to over 115 musical acts on six different stages and more than 100 speakers. There will also be over 400 vendors, food, and artwork.

Does Medical Marijuana Save Lives on the Road---Studies Say Yes

As the legalization of marijuana spreads throughout the United States, there are many concerned citizens who have begun to question the side effects this new freedom may carry with it. Yet there may be one surprising result of legalized marijuana. A recent study found that states that have legalized medical marijuana have also seen fewer automotive deaths and injuries.

Research showed that each year the average number of fatalities due to roadway injuries has been on a steady decline—particularly in states that have legalized medical marijuana. This study however does not include Massachusetts, which didn’t pass this legalization until after the data was collected.

Those opposed to the new legal marijuana laws have voiced concerns about the effects pot would have on the safety of our roadways. Yet according to this study, deaths dropped up to 11 percent in the first year after legalizing medical marijuana. By year four, road fatalities decreased by 10-13 percent. Scientists believe the increase in smoking has decreased the amount of alcohol consumption taking place.

It is important to remember, however, that this research does not condone driving under the influence of any substance and they are still conducting studies on the effects marijuana has on your reaction time. Future studies could yield results that could change society’s perception on drug use.

The issue of legalizing marijuana has been around for decades. California was the first state to allow the use of medical marijuana back in 1994. Since then 19 other states have followed suit and two states, Washington and Colorado, have fully legalized marijuana for both medical and recreational use. America is paving the way for marijuana legalization and understanding all of the various factors that it has on our society and this recent study is just one more example of the benefits of legalized marijuana. 

Washington Cities Disagree Over Welcoming Legal Marijuana Businesses

This past winter, Washington became one of the first states to legalize the use of personal marijuana for adults 21 years and older. Those of legal age can possess up to one ounce of marijuana legally, which before was considered a misdemeanor charge.

Yet, this new profound freedom has raised some concerns for the citizens of Washington. From zoning regulations to the effects it will have on the youth population, these issues must be addressed before moving forward.

Each city in Washington has decided to handle marijuana businesses differently. Seattle and Shoreline are already moving ahead with zoning and other local rules. Kent and University Place, however, are not. In fact, there may be many cities who do not welcome the legal marijuana business into their limits—and they will do so by not zoning for these businesses.

"I don't think an individual or the state has the right to force us into welcoming pot commerce." 

                                                --Steve Victor, University Place

The Seattle City Council is planning to adopt new zoning rules later this month that will provide guidelines for having marijuana retailers near youth venues. By setting strict restrictions on retailers the City Council will be able to regulate the amount of businesses allowed in the area.

While Seattle is already home to over 150 medical marijuana businesses, the main issue however still remains on how the federal government will dictate the new legalization. City officials are worried about losing their federal grants and having their employees prosecuted if they allow the regulation of marijuana. Since state laws cannot change federal government standards this issue is still up for debate.

Ultimately, however, the courts will determine how things will play out. Things seem to be moving in the right direction for Washington and the other states going through the legalization process. Like all major changes, it becomes a balancing act of outweighing the pros and cons of each issue. By addressing all of the concerns in the beginning, the overall outcome will result in an easier transition into the legalization process. 

Kent Votes NO to Recreational Pot

The Washington State Liquor Control Board is in the process of finalizing rules to start issuing licenses for the many recreational marijuana producers, processors, and retailers across the country. Kent, Washington was once viewed as a prime location for marijuana production but that doesn't seem to be in Kent's future. The City Council voted to ban medical marijuana in June 2012 and it seems that they will be treating recreational marijuana the same way.

While State law allows both medical marijuana and recreational marijuana to be produced and sold, the City of Kent has said that they believe the businesses violate federal law. As such, they will not allow any recreational businesses to open in town next year.

Some on the council are worried, however, that if they don't zone properly for future marijuana businesses, they may be left out in the cold.

"This only stops us from not being able to participate in tax revenue….People will engage in marijuana use and will spend money somewhere. I hate to see us cut off the nose to spite the face."

                                                         --Elizabeth Albertson, Councilwoman

There are a few medical marijuana businesses that still manage to operate in Kent, despite the ban. Under the zoning code, they have no legal right to operate and they have told them multiple times to close. Herbal Choice Caregivers is one business that has fought the city in Kent County Superior Court and for now stays open. 

DEA Raids Medical Marijuana Dispensaries Throughout Washington

When Washington voters legalized recreational marijuana last fall, drug enforcement agencies around the country knew it would be an uphill battle. After all, marijuana is still illegal under federal law. Yesterday, federal drug enforcement agencies flexed their muscles once again and raided several legal medical marijuana dispensaries in the Puget Sound region. Search warrants were issued and several medical marijuana dispensaries were targeted, including Seattle Cross, Tacoma Cross, and Bayside Gardens in Lacey.

Casey Lee of Bayside Gardens said that the DEA seized about $2500 worth of marijuana that was meant for medical patients. Bayside Gardens' employee Addy Norton said that the DEA seized personal cell phones and marijuana. She was also ordered to appear before a federal grand jury in September. According to the DEA, these raids were part of a two year investigation.

According to the DEA, "Several search warrants were executed today involving marijuana storefronts in King, Thurston, and Pierce Counties."

Drug Enforcement Agency Spokeswoman, Jodie Underwood told reporters earlier this year that these storefronts are in violation of state and federal law and that this action was part of an on-going comprehensive strategy to combat drug trafficking. In 2013, the DEA sent 41 warning letters to medical marijuana dispensaries in Seattle ordering them to cease and desist.

Even though Washington voters have clearly spoken up for their right to purchase medical marijuana and recreational marijuana, the Obama administration has continued to threated and harass the State of Washington and their medical marijuana dispensaries—even though most of them are completely compliant with state law. Since he took office in 2008, Barack Obama's administration has raided over 4x as many marijuana dispensaries as President Bush in half the time. 

Delivering a High: Marijuana Home Delivery Business Growing in Seattle

When Washington legalized marijuana last year, entrepreneurs across the state began salivating over the many business opportunities they could create. The latest seems to be a pot delivery business that would effectively deliver marijuana to your home.

Currently, there are several businesses that deliver medical marijuana to patients at their homes. One such business is known as Nurse Nancy Medical Marijuana Delivery and it offers pot right to your door, seven days a week between 10am and 2 am. The business itself promises discreet delivery in 30 minutes and is thriving.

With recreational marijuana ready to begin sales in 2014, many businesses are wondering if they too can begin home delivery. Unfortunately, there may be a few obstacles in their way because the drug is still deemed an illegal narcotic on a federal level. The Justice Department may not go after sick people who use medical marijuana, but they have made no decisions on what they will do to businesses—even licensed ones.

When legalized pot sales begin in 2014, delivery businesses will likely seek to expand to include home delivery of recreational marijuana. How the federal government will feel about this is still anyone's guess. If they choose to go after businesses for selling and transporting marijuana, licensed businesses (like Nurse Nancy's) could even find that they are facing criminal charges. 

What YOU Need to Know About Legalized Marijuana

Marijuana is now legal in the State of Washington; however, that does not mean that "anything goes". There are still laws and regulations in place that will govern who can buy marijuana, how much marijuana you are allowed to buy, and who can provide, sell, and grow marijuana. If I-502 has you a little hazy, here are some important facts YOU need to know about legalized marijuana in Washington.

•  Anyone over the age of 21 can buy legalized marijuana and you do not have to be a resident of the State of Washington
•  Legalized marijuana will likely be up for sale sometime in the spring of 2014 if all goes well.
• Only authorized retail stores will be allowed to sell legalized marijuana and the number of those stores will be limited based on a formula that distributes the number of locations proportionate to the most populous cities in each county.
• Retail marijuana stores will be open between the hours of 8 a.m. and 12 a.m.
• The cost is estimated to be $12 per gram, but taxes may push this price even higher.
• A single transaction will be limited to one ounce of usable marijuana, sixteen ounces of marijuana infused product in solid form or seventy two ounces of marijuana infused product in liquid form.
• You will not be allowed to give marijuana away to another person. This will be considered delivering marijuana and will be a felony offense.
• In Washington, you will only be allowed to smoke marijuana in your home. If you smoke in public, you will face a civil fine. Some entrepreneurs are looking into creating "private clubs".
• I-502 only allows for possession of marijuana and does not give you the license to grow your own marijuana. Growing one plant is still considered manufacturing marijuana and will be classified as a felony.
• Driving under the influence of marijuana is still illegal and can lead to a DUI. If you are pulled over with more than .5 nanograms per mil of active THC in your blood then you can be charged with DUI.

Hemp Beer is Here and Washington Brewers Celebrate

The Seattle breweries were bound to get stoked about Washington's new legalized marijuana industry. This month, Redhook Brewery, in collaboration with Seattle's Hilliard's Beer, has announced the release of a new hemp beer—appropriately titled "Joint Effort". This beer is the brewers' way of celebrating the legalization of marijuana in Washington State.

“We’re really excited to release Joint Effort with Redhook because we have a lot of respect for how they helped shape craft beer in Washington. It’s the first collaboration beer either of us has done with another brewery and it’s fitting they started in Ballard a few blocks from where we are. Voting to legalize marijuana use in Washington is another example of the pioneering spirit that makes this state so great.”

                                              ---Ryan Hilliard, co-founder of Hilliard's Beer

Joint Effort is a session ale brewed with hemp seeds. It is dry-hopped with Zeus, Cascade, Summit hops, and has a resinous hop aroma that is balanced nicely by the nuttiness from the hemp seeds. To add to the fun, Joint Effort will be poured by a handle tap shaped like a bright yellow bong. This fun beer will only be available in Washington State and is sure to add some festivity to the newly legalized marijuana market.

If you live in the State of Washington and want to sample this fun and unique brew, call your local pub to see if they carry it. Joint Effort will be available on tap throughout the summer in Washington and then in 22-ounce bottles.

Washington's New Pot Laws Could be Good for Environment

The Washington State Liquor Control Board's decision to allow marijuana to be grown outdoors could have an unintended consequence for the environment—a good one. Some environmental advocates believe that this alone will reduce the electrical use and associated carbon emissions in our state; after all, indoor cannabis production is estimated to consume 3-5% of the state's electrical grid power. Being allowed to grow cannabis outdoors may help to significantly reduce the carbon dioxide emissions and help to conserve electricity, which in turn could lead to a lower cost to electrical ratepayers across the state.

Peer reviewed research published in the Journal of Energy Policy estimates that 1% of the nation's power is used for indoor cannabis production. This is valued at $6 billion annually and would be a significant reduction in our electrical consumption annually. Indoor cannabis production also produces 15 million metric tons of CO2 which is equivalent to 3 million cars on the road each year.

While the environmental impacts of being allowed to grow marijuana "out in the open" have not been extensively researched, environmental advocates will be watching Colorado and Washington with renewed interest. If the outdoor production of marijuana does indeed reduce CO2 emissions and electricity consumption, you can be sure other states are bound to follow in our "reduced" carbon footprints.

Is "Big Marijuana" Coming to Washington

Jamen Shively is coming…and to most marijuana activists, this is not necessarily a good thing. Shively is an aspiring pot profiteer who dreams of building a budding marijuana empire. The 45-year-old Microsoft manager vowed to raise $10 million quickly to build his marijuana empire and hopes to turn it into an international powerhouse. He wants his company, Diego Pellicer, to be world-renowned in marijuana circles and eventually across the globe.

While Shively has promised a "cautious and measured" expansion, many marijuana advocates and state regulators are nervous that he will attract unwanted attention to their new system and create a backlash across the country. His vision is remarkably similar to "Big Tobacco" who cashed in for years on American's addictions and abuse. Those who are in charge of growing Washington's legal marijuana economy are concerned that this type of profiteering could destroy the legalized marijuana movement and create havoc for the state.

At the moment, it is still unclear how the federal government plans to address Washington and Colorado's new pot laws. While the Justice Department has said that it doesn't intend to prosecute medical marijuana users, it may go after those individuals (like Shively) who try to get rich off of commercial sales. They may even sue to block Washington and Colorado pot growers, processors, and stores.

Government Spends $20 Billio per year Trying to Prevent an American High

In 2013, the United States government spent $17.7 billion on the NASA program. That same year, they spent an estimated $20 billion on the war on marijuana. Sadly, this enormous amount of money has been simply spent "trying" to stop people from getting high—not actually achieving it. In 2011, marijuana was the most commonly used illicit drug in the country and almost half of all adults have tried it at least once in their lives. These are the highest numbers ever recorded, so the government's $20 billion dollar/year marijuana crack-down has been largely ineffective.

Yet even though there are more adults using marijuana and it is more readily available than ever before, where has this money been going? Simple--this $20 billion has been spent to arrest and incarcerate individuals who possess, sell, and consume pot. Since 1989, more people have been put in jail for drug related offenses than for all other violent crimes combined. This is a disturbing trend that many hope the legalization of marijuana will curtail.

Advocates for the legalization of marijuana across the country often point to the fact that marijuana is safer than nicotine, less addictive than caffeine, and causes fewer deaths than alcohol, yet it is the only one that is still illegal. They believe that $20 billion is an awful lot to waste on the war on marijuana—especially since the majority of Americans back the legalization of marijuana. Now that Washington and Colorado have legalized pot, will the federal government join the movement?

Legalized Marijuana Sees Opposition from Medical Marijuana Community

For years advocates for medical marijuana have fought to have marijuana legalized in this country. Now, their dream is a reality in Washington and Colorado and more states are preparing to follow suit. Yet many of the same people who have crusaded so long and hard for legalized marijuana have spoken out against it, citing concerns with the new taxes and regulations. Their fear is that these taxes and regulations will affect their medical marijuana laws and they wish to keep these two as separate as they can.

Since medical marijuana was legalized in Washington, numerous medical marijuana collectives or co-ops have sprouted throughout the state. Most of these storefronts operate in a way that makes it possible for them to exchange their marijuana crops for donations instead of selling it. This exchange system has become very profitable for many medical marijuana individuals.

After I-502 passed in November, the Washington State Liquor Control Board has been working diligently to draft rules of the new pot system, including taxing marijuana and tracking "seed to store". It is exactly these types of taxes and regulations that have the medical marijuana community concerned.

Pat Hynes, part-owner of Professional Patient Co-op in Seattle's Fremont neighborhood voiced his concerns for the patients who need this medicine to feel better. Many are in constant and chronic pain and can barely afford to pay for their marijuana as it is. An additional 25%-50% in taxes would be devastating for many of them.

Another group that is concerned over I-502's regulations and taxes are the medical marijuana growers. Many are concerned that big business will run them out of town altogether. As it stands, large corporations, such as Phillip Morris and AB InBev are lobbying in Olympia. How I-502 and the new legalized marijuana business in Washington will affect the medical marijuana community remains to be seen.

US Attorney General Ready to Respond to Marijuana Legalization

United States Attorney General Eric Holder told the Senate that the Obama Administration is in the process of formulating a policy in response to states that have already legalized marijuana. These newly enacted laws in both Colorado and Washington have put the state laws in direct violation of the federal laws. Currently the federal law says it is still a crime to possess and sell marijuana.

"We are considering what the federal response to those new statutes will be and we will have the ability to announce what our policy will be relatively soon."

                   ---Eric Holder, United States Attorney General

There are many who believe that the US government should take steps to nullify Colorado and Washington's amended laws. These people include eight former heads of the Drug Enforcement Administration and four former drug czars. In their letter to the Attorney General, they stated that "our nation urgently needs action from Attorney General Holder to ensure that federal marijuana laws are enforced".

US House member Steve Cohen, however, responded that "the federal government should concentrate on shutting down meth labs, not the laboratories of Democracy". Even Obama himself has said that the enforcement of federal marijuana laws in Washington and Colorado would not be a priority. For now, Washington and Colorado pot enthusiasts wait patiently for the federal government's final decision.

Seminars Teach Budding Pot Entrepreneurs how to Start Marijuana Business

The Washington Cannabis Institute with the help of attorneys, business professionals, and other industry experts are providing seminars to help budding entrepreneurs start their own marijuana business in the state of Washington. After Initiative 502 passed in 2012, Washington became one of just two states to legalize the recreational use of marijuana. This means the need for marijuana growers, retail stores, and transportation businesses.

These weekend seminars will discuss everything from the cultivation of marijuana to current state pot laws regulating the sales of marijuana and the seminar's curriculum is designed specifically to help students and entrepreneurs understand the regulations and licensing requirements of running a legal pot business. Some of these classes will be given by attorneys in the Washington area who are familiar with these new pot laws and other classes will be run by successful marijuana growers and sellers who can offer valuable tips and real world advice about running a pot business.

These seminars are particularly useful now that Washington officials have finally set a few rules that must be followed by all marijuana industry professionals. These rules include tracking pot sales from "seed to store" and putting a limit on how many pot stores will be allowed to operate in one county. Washington also plans to use the criminal history point system to determine eligibility for procuring a license to legally grow and sell marijuana. 

War Against Marijuana Has Cost Taxpayers Dearly

Throughout Washington, legalized marijuana has become mainstream conversation. In fact, all across the country, more and more legislators and public officials are talking about the decriminalization of marijuana and the legalization of pot. One of the main reasons for all this talk is that as a nation we have seen a cultural shift in how we perceive marijuana and those who use it. In addition, the massive amounts of federal money that is spent to control marijuana use has many questioning if that money could be better spent elsewhere.

The American Civil Liberties Union (ACLU) has stated that over $3.6 billion a year is used in the enforcement of laws against drug possession (88% for marijuana related possession arrests). Our taxpayer dollars are hard at work to police, control, and limit the use of marijuana across the country. In fact, the War on Drugs has spent more than $1 trillion since its inception.

Here are some more startling statistics on the War against Marijuana:

• States will spend an estimated $20 billion to enforce marijuana laws over the next 6 years alone
• Each state pays approximately $750 per marijuana arrest
• $95 a day is spent housing each inmate that is arrested due to a marijuana-related offense
• The New York Police Department spent 1 million hours enforcing low-level marijuana offenses between   2002 and 2012
• One marijuana arrest is made every 42 seconds in the United States

Now, Washington and Colorado have legalized marijuana and hope to benefit economically from the tax revenue that will come from the sales, production, and farming of marijuana. In addition, those states will spend less money arresting and sentencing individuals for marijuana related crimes. How much revenue the state will earn from legalized marijuana remains to be seen. Yet many who support the legalization of marijuana believe legalized pot will ultimately be good for all taxpayers. 

Medical Marijuana Could Impede Washington's Recreational Pot Market

Under current Washington State law, marijuana can be used legally to treat a wide range of medical problems as long as it is prescribed by a physician. While this has been wonderful for patients with chronic and disabling pain, it could pose some serious problems for the new recreational pot market that is about to begin. State officials believe that it may now be necessary to raise taxes or impose strict rules on medical marijuana, and this news has medical marijuana patients and dispensaries up in arms.

In order to avoid undercutting the new recreational market, some officials want to impose higher taxes on medical marijuana. Since 1998, many storefronts that sell medical marijuana pay no taxes and individuals are allowed to grow their own medical marijuana in collective gardens. In contrast, the recreational use industry faces voter-approved mandate to tax their marijuana at a current rate of 75%. This is in addition to the state and local sales tax.

Washington's pot consultant Mark Kleiman and other legislators believe that the many of Washington's medical marijuana patients are actually recreational users who exaggerate their conditions. Since most of the pot will be consumed by a minority of price-conscious heavy users, cheaper medical marijuana will make it more difficult for the recreational market to become established.

Brian E. Smith, a spokesman for Washington's Liquor Control Board, agreed that medical marijuana will be a challenge to recreational pot due to its light regulations and taxes. While some of Washington's medical marijuana dispensaries have begun paying taxes in an attempt to lessen the chances of being shut down by local and federal authorities, a large majority have not.