On November 6th initiatives in Colorado and Washington State were passed that effectively legalized marijuana for leisurely use. This marks a historical moment making Washington State and Colorado the first states to legalize marijuana.
The initiatives describe new laws designed to decriminalize possessing small quantities of marijuana by people over the age of 21. In addition to decriminalizing possession the initiatives will open a brand new marketplace for growing, packaging and selling marijuana.
Under the new law in Washington State there'll be a 25% sales tax on marijuana. Forty percent of the new income will go to state and local budgets. This 25% tax rate will be imposed on marijuana products three times. Marijuana will be taxed when the grower sells to the processor, when the processor sells to the retailer and once the merchant sells to the customer. The tax on marijuana sales promises to be an excellent source of important revenue for the state.
Although the initiatives have passed at state level, marijuana remains to be unlawful under federal law. Marijuana continues to be classified as a controlled substance under the Controlled Substances Act of 1970. In a written statement, the Department of Justice has made it very clear that "enforcement of the Controlled Substances Act remains unchanged".
The divergence of these fresh state laws from federal laws is likely to make for lawsuits in the near future. It's possible that the federal government could sue Washington and Colorado for being in violation of federal laws. The Department of Justice is presently evaluating the new state laws as well as similar initiatives around the country.
Questions abound for retailers, growers, consumers as well as businesses that have long had zero tolerance policies concerning marijuana use. It is probable that there is going to be controversy associated with employers penalizing or terminating the employment of people who test positive for marijuana.
Even though this is a milestone for change in both Washington and Colorado it is apparent that it's just the beginning. It will likely take a year or more for all of the specific rules and details to be drafted and approved by local authorities. In the meantime, marijuana supporters in both states will be hoping that the federal government recognizes the choice of the voters permitting each state to translate the new laws into productive and economically viable new ventures.
Everyone is waiting to see how the feds react to the new laws.
The initiatives describe new laws designed to decriminalize possessing small quantities of marijuana by people over the age of 21. In addition to decriminalizing possession the initiatives will open a brand new marketplace for growing, packaging and selling marijuana.
Under the new law in Washington State there'll be a 25% sales tax on marijuana. Forty percent of the new income will go to state and local budgets. This 25% tax rate will be imposed on marijuana products three times. Marijuana will be taxed when the grower sells to the processor, when the processor sells to the retailer and once the merchant sells to the customer. The tax on marijuana sales promises to be an excellent source of important revenue for the state.
Although the initiatives have passed at state level, marijuana remains to be unlawful under federal law. Marijuana continues to be classified as a controlled substance under the Controlled Substances Act of 1970. In a written statement, the Department of Justice has made it very clear that "enforcement of the Controlled Substances Act remains unchanged".
The divergence of these fresh state laws from federal laws is likely to make for lawsuits in the near future. It's possible that the federal government could sue Washington and Colorado for being in violation of federal laws. The Department of Justice is presently evaluating the new state laws as well as similar initiatives around the country.
Questions abound for retailers, growers, consumers as well as businesses that have long had zero tolerance policies concerning marijuana use. It is probable that there is going to be controversy associated with employers penalizing or terminating the employment of people who test positive for marijuana.
Even though this is a milestone for change in both Washington and Colorado it is apparent that it's just the beginning. It will likely take a year or more for all of the specific rules and details to be drafted and approved by local authorities. In the meantime, marijuana supporters in both states will be hoping that the federal government recognizes the choice of the voters permitting each state to translate the new laws into productive and economically viable new ventures.
Everyone is waiting to see how the feds react to the new laws.
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