Martin Nickerson has filed a federal lawsuit against the state of Washington, attempting to bar the state from collecting taxes on marijuana sales. Washington state officials are demanding that he pay taxes on those sales to the tune of $62,000. However, since Nickerson is under prosecution for the criminal sale of marijuana as a medical marijuana producer, he claims that forcing him to pay taxes on his sales would violate his constitutional right against self-incrimination.
Alison Holcomb, an attorney with the American Civil Liberties Union who was the main author of Washington State’s successful ballot initiative, said the lawsuit has a low probability of taking down the state’s legal marijuana system.
Suppliers like Nickerson have already made public their intent to break federal law, Holcomb said, so paying taxes on their proceeds would not do much to further incriminate them.
“Paying taxes on marijuana implicates you, but so does everything else about being engaged in this system,” she said.
Ultimately, the case brings into question whether federal laws trump state laws when it comes to collecting tax revenue generated from marijuana sales. The outcome of this case could have a significant impact on medical marijuana businesses around the country.
This Wednesday, Gov. Andrew Cuomo is expected to announce an executive action creating a medical marijuana program. While it’s encouraging that he has realized patients should not be punished for using their medicine, unlike the medical marijuana bill sponsored by Assemblyman Richard Gottfried and Senator Diane Savino, Gov. Cuomo’s proposal would not create an effective program. The “State of the State” address will be streaming live at 11:30am ET on Wednesday.
It appears the governor’s plan would only allow patients to access marijuana from a limited number of hospitals, which would dispense marijuana that was either obtained from a federally approved source or that is illegal to dispense under federal law. But the federal government has refused to provide marijuana even to some short-term FDA-approved studies, and there is no reason to think it will approve marijuana for longer-term patient access. Meanwhile, hospitals surely wouldn’t break federal law by distributing unapproved marijuana.
While election day saw an overwhelming amount of media coverage surrounding marijuana issues, some of the details were confusing to people not living in those states, so here are the details for Michigan. Three cities in Michigan voted to remove criminal penalties associated with possession or transfer of up to one ounce of marijuana. The ordinances apply to those 21 and over on private property. Ferndale and Jackson voters passed city ordinances by 69% and 61% respectively, while voters in the capital city, Lansing, passed an amendment to their city charter with 63% of the vote. Ferndale, Jackson, and Lansing all join the ranks of other Michigan cities like Detroit, Grand Rapids, Ann Arbor, and Kalamazoo, which had previously removed criminal penalties associated with marijuana possession or set marijuana as the lowest law enforcement priority.
Law enforcement is still able to enforce state and federal laws against marijuana, but local cops have the option to follow these ordinances and not charge adults for possession of small amounts of marijuana. Activists will be playing close attention to whether or not they heed the will of the voters.
Last week, MPP’s Mason Tvert spoke with Andrew Sullivan at The Dish about several aspects of marijuana policy and where it is headed. In this segment, he discusses where the federal government stands on the implementation of marijuana regulations in Colorado and Washington, and how they will deal with marijuana businesses:
The U.S. Senate Judiciary Committee held a hearing Tuesday regarding “Conflicts Between State and Federal Marijuana Laws.” The Justice Department announced on August 29 that it will not seek to stop Colorado and Washington from moving forward with implementation of voter-approved laws establishing state-regulated systems of marijuana cultivation and retail sales.
The truly amazing part was that the majority of those called to testify were in support of the DOJ policy. This included King County Sheriff John Urquhart of Washington and Jack Finlaw, chief legal counsel for Colorado Gov. John Hickenlooper. The only people who seemed to disagree with the DOJ not getting in the way of these states enacting the will of their voters were Sen. Chuck Grassley and Kevin Sabet, one of the founders of the disingenuous Project SAM.