In February 2013, the Marijuana Tax Equity Act was introduced. This act was a joint effort by congressmen from Oregon and Colorado for the purpose of updating the federal treatment of marijuana to reflect a respect for state legalization laws. This act was developed to update the tax treatment of marijuana based businesses and gain federal recognition of legal marijuana in certain states.
If enacted, this act would have created a 50% tax on marijuana at the producer level, similar to taxes on tobacco and alcohol. Other provisions would have included specific fees and further study of the marijuana industry for additional reform. The 2013 Marijuana Tax Equity Act died in committee.
The objective of updating internal revenue code in reference to marijuana did not end with the death of the 2013 bill. Since that time, several other bills have been introduced in the interest of changing the federal laws regarding marijuana and states’ rights to regulate it.
The Respect State Marijuana Laws Act will cause state legalization laws to be recognized at the federal level, if passed. This law would not be a blanket legalization of marijuana, but would simply guarantee the absence of federal interference in states that have legalized it.
The Ending Federal Marijuana Prohibition Act would go a step further and completely recreate the laws regarding marijuana production, distribution, and sale. Passage of this act would end the federal ban on marijuana.
Another proposed bill for consideration is the States’ Medical Marijuana Patient Protection Act. If developed into legislation, this act would put the authority of state laws regarding medical marijuana above federal regulations, ensuring that those complying with state law will not be prosecuted under contradictory federal law.
Several other bills are under current consideration in the US Congress in an effort to realign federal law to reflect the changes in state laws regarding medical and recreational marijuana use. When these laws are in conflict, citizens run the risk of prosecution under federal law, even if they are in complete obedience to the laws of their state.
As on other public issues, the agreement on legal issues is vital to proper understanding and application of state and federal laws. In cases where there is disagreement, innocent people find themselves prosecuted or confusion leads to a waste of government resources. The passage of a bill recognizing state rights to control marijuana would eliminate the danger of confusion and unexpected prosecution for acts that have been legalized in specific states.
Rep. Earl Blumenauer and Rep. Jared Polis wrote “The Path Forward: Rethinking Federal Marijuana Policy.” Their report outlines the problems with the current policies while highlighting the need and benefits that will come with a Federal marijuana policy. “Federal prosecutors and local law enforcement in each state often handle the situation differently, and the entire industry – an industry that many Americans support – remains clouded by uncertainty, illegitimacy and fear.” If the Federal Government doesn’t take action the current regulatory problems and confusion will only get worse. More and more states are legalizing medical and recreational marijuana. The marijuana business is here to stay so it’s time for the Government to accept it rather than try to put up road blocks.