Marijwhatnow? Marijuana Legalization in Washington€¦ · IRC § 280E “No deduction or credit...

Marijwhatnow? Marijuana

Legalization in Washington

Wednesday, October 1, 2014

Education: New York University, (BA, 1991)

-Member Phi Beta Kappa

University of Washington School of Law, (JD, 1997)

Practice Areas: Land Use Law

Real Estate Law

Business Law

Recreational Marijuana Business Law

Heather Wolf, Partner

Contact Information:

(360) 676-0306

www.brownlieevans.com

heather@brownlieevans.com

http://www.brownlieevans.com/recreational-marijuana-business-resources/

What does the law allow?Anyone over the age of 21 can

possess and privately consume:

-Up to 1 ounce of dried

marijuana

-Up to 16 ounces of marijuana

infused edibles

-Up to 72 ounces of marijuana

infused products in liquid form

-Up to 7 grams of concentrated

hash

Where can you buy marijuana?

Buying marijuana

prior to legalization

First legal retailers!

Only 334 Retail Licenses have

been made available through State lottery

Where can you

consume marijuana?

Can I drive high?

Who can grow?

Only licensed producers can grow, it is still

illegal to grow your own marijuana

Three Tiers

Tier 1: Less than 1,400 square feet

Tier 2: 1,400 square feet to 7,000 square feet

Tier 3: 7,000 to 21,000 square feet

Where can I set up my

marijuana business?

You cannot be within 1,000 feet of

any elementary or secondary school,

playground, recreation center, child

care center, public transit center,

library or game arcade

Backlog of Licenses• 2,600 Production License Applicants submitted

• Only 235 production licenses have been

issued to date

• 16 in Whatcom County

• About 9% of the applicant pool has been licensed

From July 1, 2014 to September 29, 2014

marijuana licensees have generated

$18,750,944 in sales, and $4,687,736 in

excise taxes system wide

Legal Issues faced by

Applicants and Licensees

Financing?

?

Federal Taxation and Bankruptcy

IRC § 280E

“No deduction or credit shall be allowed for any amount paid or

incurred during the taxable year in carrying on any trade or business if

such trade or business (or the activities which comprise such trade or

business) consists of trafficking in controlled substances (within the

meaning of Schedule I and II of the Controlled Substances Act) which

is prohibited by federal law or the law of any state in which such trade

or business is conducted.”