Tag: legalized marijuana

St. Louis Will Lose A Half-Million Dollars In Marijuana Tax Revenue After Failing To Submit Documents To Missouri Officials

The city of St. Louis will lose approximately $500,000 in tax revenue after it failed to submit documents with the Missouri Department of Revenue to collect a voter-approved recreational marijuana tax.

City voters approved a 3 percent tax on recreational marijuana in April. State law would have allowed the city to begin collecting the tax on October 1 if paperwork was filed by June 30.

Bill 139 was passed unanimously by the St. Louis Board of Aldermen last December to ask voters for permission to tax recreational marijuana by 3 percent. The state tax on recreational marijuana was set at 6 percent when Missouri voters approved the initiative last November.

“The City wishes to impose an additional sales tax to support efforts for the residents of the City of St. Louis to address historic inequalities,” the bill stated. “These efforts may include but are not limited to funding access to education, workforce opportunities, and youth engagement.”

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Legalize Public Cannabis Consumption

“Smells good.”

If you smoke weed outside, especially in a city, there’s a pretty good chance you’ve heard that statement of fact from a stranger. It happens to me at least once a week, usually a lot more. 

Look in the pages of the New York Post, Wall Street Journal, and The Atlantic, watch local news, or listen to politicians, though, and you might be fooled into thinking that weed does not, in fact, smell good. Wild, right? 

Under titles like “I Don’t Want To See You Get High” and “NYC’s Disgusting Pot Stench Is Keeping Tourists Away,” those loud voices fed up with loud smells are the last gasps of prohibition’s fading foghorns. Weed won and the world hasn’t fallen into disarray (well… at least not because of weed), so cannabis critics are reaching for anything they can to push back against its growing role in American life. These smell sheriffs might even support legalization, just as long as they can’t see or smell it. 

But legalization without the guarantee of safe, free, and open consumption is not legalization at all, and while much of the discussion from inside and outside of the weed industry is about, well, industry, New York has quickly shown us that the right to public consumption should be one of the most important facets of any and every legalization law. 

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California And New York State Officials Tell People To Buy Marijuana On Black Friday

Marijuana regulators in California and New York are encouraging people to take advantage of Black Friday deals and support small businesses by shopping for cannabis at licensed retailers.

As companies promote savings on the post-Thanksgiving sales occasion, both the California Department of Cannabis Control (DCC) and the New York Office of Cannabis Management (OCM) shared posts on Friday to help people find marijuana from authorized venders.

“Don’t follow the hordes of shoppers today!” California’s DCC said. “This Friday shop smart, shop licensed cannabis.”

The New York OCM, meanwhile, shared a video of Empire State Development Commissioner Hope Knight, who also serves on the state Cannabis Control Board (CCB), urging consumers to support small and local businesses this weekend to “sustain jobs and generate regional economic growth.” That same sentiment applies to the marijuana market, regulators said.

“While you grab some #BlackFriday deals, take a note from #NYCCB member, Hope Knight and support #SmallBusinessSaturdays at one of your local dispensaries,” they said.

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Hawaii Attorney General’s Office Defends Marijuana Legalization Proposal From Law Enforcement Attacks

The office of Hawaii’s attorney general is pushing back against criticism of the official’s recently released marijuana legalization plan, defending its public health and safety provisions as members of the law enforcement community voice opposition to the reform.

After announcing in April that her office would support efforts to enact legalization, Attorney General Anne Lopez (D) unveiled a comprehensive cannabis bill last week, earning praise from supporters in the legislature and mixed reactions from advocates who want to see it revised to more aggressively address equity issues and reduce criminalization.

On the other side of the debate, however, Honolulu Prosecuting Attorney Steve Alm says representatives of law enforcement are firmly against legalizing marijuana in general and the attorney general’s plan specifically, arguing that the current system of prohibition is “not broken,” and regulating adult-use cannabis would lead to increased hospitalizations without mitigating the illicit market.

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Ohioans Arrested For Marijuana Must Be Involved In Talks About Changing Legalization Law, Not Just ‘Anti-Cannabis’ Republicans, Lawmaker Says

An Ohio Democratic lawmaker wants to see people who’ve been criminalized over marijuana, as well as those with industry experience, involved in any efforts to amend the state’s voter-approved legalization law, arguing that it shouldn’t be left up to “anti-cannabis” legislators alone to revise the statute.

Ohio Senate and House GOP leaders have already previewed plans to pass a package of changes to the law before possession and cultivation becomes legal next month, with a focus on potential revisions affecting tax revenue distribution, public consumption and law enforcement, for example.

But Rep. Juanita Brent (D) says it’s important that people who have been directly impacted by prohibition and who may participate in the legal marketplace have seats at the table as leadership moves ahead with possible amendments.

“If you’ve been criminalized by cannabis, the best thing you can do is come back into the field,” Brent told The Statehouse News Bureau.

“Ohioans have to remember that the people who are trying to be the loudest at the Statehouse are people who were anti-cannabis,” she said. “We cannot have anti-cannabis people leading on what’s going to happen with cannabis. We need people who are involved. We need people who have been doing the work. We need people who have been advocating.”

So far, the conversation around revising the initiated statute has been top-level, with GOP lawmakers and Gov. Mike DeWine (R) speaking generally about areas that they’re interested in changing. But there’s been a consistent emphasis on revising provisions on how marijuana tax revenue will be divvied up, which may be an issue for advocates who want to see the sizable investment in social equity and community reinvestment that’s prescribed under the measure as approved by voters.

Senate President Matt Huffman (R) said last week that he didn’t think most voters considered the nuances of the cannabis reform proposal when they went to the ballot and instead simply passed it based on the broad belief that marijuana should be legal for adults. He argued, for example, that the majority probably doesn’t support prioritizing cannabis business licensing for people who’ve been disproportionately targeted by criminalization.

The governor made similar remarks after this month’s election, as he expressed his interest in quickly changing various components of the law. However, he’s stressed that voters shouldn’t expect any “surprises,” and the proposed revisions that are being discussed would still honor the “spirit” of the reform.

Rather than introduce new standalone legislation through regular order, the Senate president said the plan is to incorporate cannabis amendments into an unrelated House-passed bill and use that as the vehicle, sending the revised measure back to the House for a simple concurrence vote.

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Teens Are Not More Likely To Use Marijuana After Legalization, Study Finds

A study of high school students in Massachusetts found that youth were no more likely to use marijuana after legalization, though more students perceived their parents as cannabis consumers after the policy change.

“No statistically significant differences were found in the prevalence of past-30 day cannabis use before and after legalization among adolescents,” says the report, published in the journal Clinical Therapeutics. The proportion of students who reported perceiving that a parent uses cannabis, however, rose from 18 percent to 24 percent after legalization.

“Adolescent perceptions of their parents as cannabis users increased after legalization,” the study says, “even before state-regulated retails [sic] sales began.”

The findings stem from the results of two waves of survey data collected from two eastern Massachusetts high schools in 2016 and 2018. The earlier survey took place before legalization, while the later one occurred after legalization went into effect but before retail sales began.

In 2016, 82 percent of respondents reported that their perception was that their parents did not use marijuana. By 2018, that number had fallen slightly, to 76 percent.

When it came to their perception of best friends’ cannabis use, students also reported a slight bump. In 2016, 31 percent of students said they perceived their best friend used marijuana, which climbed to 36 percent in 2018.

One main finding of the study was that the likelihood of marijuana use was significantly higher among adolescents who reported perceiving that a parent, sibling or best friend uses the drug.

“The strongest association with past 30-day use was perceived marijuana use among best friends,” the study says, followed by the perception that a sibling uses cannabis both medicinally and recreationally. Adolescents’ perceptions that a parent uses medical and/or adult-use marijuana was also associated with a higher likelihood of past 30-day use.

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Up In Smoke: California’s Largest Pot Distributor Collapses Amid $17 Million In Unpaid Taxes

In mid-May, as rumors of the company’s dire situation swirled, CEO Mike Beaudry insisted “these rumors are categorically not true.”

HERBL completely collapsed less than a month later, following in the footsteps of other California cannabis startups like Flow Kana and MedMen.

The company leaves behind $17 million in unpaid taxes, while several smaller pot companies which have been left in the lurch, SFGate reports.

“Mike [Beaudry, HERBL’s CEO] and his team did a really good job of hiding that fact from their own brands… that’s how they kept getting our products,” said Ali Jamalian, owner of San Francisco cannabis company Sunset Connect, who claims that HERBL owes him $180,000.

Another CEO, Tyler Kearns of Sacramento-based cannabis company Seven Leaves, said HERBL owes his company $880,000. He says he knew the collapsed distributor was in trouble when he found out in June that they were laying off delivery drivers, and that it was going to be near impossible to get that money back.

“I knew this was going to be the biggest failure in U.S. cannabis history,” he told the outlet.

HERBL’s role in the California cannabis ecosystem was crucial, acting as a middleman between pot producers and retailers. Its downfall isn’t just a bad trip for the company; it’s a red flag for the industry, indicating that even the mightiest can fall due to systemic issues.

“I do feel like we’re going to see a significant and material number of closures, up and down the supply chain,” said Wesley Hein, president of the Cannabis Distribution Association, who attributes HERBL’s failure in part to poor business decisions – particularly its continued reliance on traditional distribution models while pot retailers struggled to pay their bills. He says the collapse also exposes systemic issues in the state’s pot industry that will doom other industries – such as overtaxation, competition from unlicensed businesses, and “very excessive and overly burdensome regulations.”

He compared the collapse of HERBL to Lehman.

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New York Governor Signs Marijuana Tax Cut Bills, Providing Local 280E Relief For NYC Businesses

New York’s governor has signed legislation that to provide tax relief to New York City marijuana businesses that are currently blocked from making federal deductions under an Internal Revenue Service (IRS) code known as 280E.

About five months after the Senate and Assembly approved the proposal, and less than a week after both chambers formally transmitted their identical bills to Gov. Kathy Hochul (D), she signed them into law on Friday.

While Hochul signed a separate budget bill last year that included provisions allow state-level cannabis business tax deductions—a partial remedy to the ongoing federal issue—New York City has its own tax laws that weren’t affected by that change. The new measure is meant to fill that policy gap.

“This bill would allow a deduction for business expenses, incurred by taxpayers authorized by the Cannabis Law to engage in the sale, distribution, or production of adult-use cannabis products or medical cannabis, for purposes of the unincorporated business tax (UBT), the general corporation tax (GCT), and the corporate tax of 2015, commonly referred to as the business corporation tax (BCT),” a summary says.

A section of the city’s tax code would be amended to add sections allowing the deductions “in an amount equal to any federal deduction disallowed by section 280E of the internal revenue code.”

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Maryland Republicans Want To Let Police Search Cars And People Based On Smell Of Marijuana, Which Is A Legal Product

Republican lawmakers in Maryland are aiming to undo a law that prevents police from stopping or searching people and vehicles based merely on the smell of marijuana, claiming the measure has put motorists at risk and took away an important tool used by law enforcement to seize people’s firearms.

The effort is one of five legislative proposals that the Maryland General Assembly’s Joint Republican Caucus unveiled this week as part of its public safety agenda for the coming legislative session, which runs from January to April of next year.

“There is no doubt about it, people using cannabis while riding in or operating a vehicle makes our roads less safe,” House Minority Whip Jesse Pippy (R) said at a press conference Tuesday. “The Drug Free Roadways Act of 2024 will remove the prohibition from stopping and searching vehicles due to the odor of cannabis.”

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Biden’s Justice Department Says Marijuana Consumers Are ‘Unlikely’ To Store Guns Properly In Latest Defense Of Federal Ban

The Biden administration has once again found itself in federal court defending a ban preventing people who use marijuana from buying or possessing firearms, arguing that historical precedent “comfortably” supports the restriction and that cannabis consumers with guns pose a unique danger to society, in part because they’re “unlikely” to store their weapon properly before using marijuana.

In a brief submitted to the U.S. Court of Appeals for the Third Circuit on Wednesday, attorneys for the Justice Department responded to a series of prompts from the judges, asserting that the firearm ban for marijuana consumers is justified based on historical analogues to restrictions on the mentally ill and habitually drunk that were imposed during the time of the Second Amendment’s ratification in 1791.

The federal government has repeatedly affirmed that those analogues, which must be demonstrated to maintain firearm restrictions under a recent Supreme Court ruling, provide clear support for limiting gun rights for cannabis users. But several federal courts have separately deemed the marijuana-related ban unconstitutional, leading DOJ to appeal in several ongoing cases.

For the case before the Third Circuit, the government is defending the ban against Erik Matthew Harris, who was convicted of violating the federal statute prohibiting the possession of a firearm by a person “who is an unlawful user of or addicted to any controlled substance.” As the Daily Caller first reported, Harris’s legal representation also submitted a supplemental brief to the court on Wednesday that broadly disputes both the substance of the conviction under the statute, as well as the idea that there are relevant historical analogues to uphold the existing ban.

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