The cannabis industry is an easy target for legislatures to saddle with heavy taxes. In Washington State for instance, there is a 25% tax at three different stages of cannabis production: from the grower to the processor, from the processor to the retailer, and the retailer to the customer. These taxes are in addition to any other state or local sales taxes that might apply. Oregon Representative Earl Blumenauer, for instance, has introduced marijuana reform legislation that would enact a 50% excise tax on production.
A handful of legislators recently drew up a letter raising questions and concerns about the law, including whether it can be implemented by December as required under voter-approved Initiative 502. Alison Holcomb, drug-policy director for the ACLU of Washington and one of the law’s sponsors, defended it in a point-by-point response to the letter. Holcomb also implied that some of Hurst’s concerns could lead to a “Big Marijuana” industry whose advertising targets young people.