Openly gay U.S. Rep. Jared Polis, D-Colo., and U.S. Rep. Earl Blumenauer, D-Ore., this week introduced two bills to de-federalize marijuana policy and create a framework for taxing marijuana.
Polis' Ending Federal Marijuana Prohibition Act would remove the U.S. Drug Enforcement Agency’s authority over marijuana and allow states to choose whether to allow marijuana for medicinal or recreational use.
Blumenauer’s Marijuana Tax Equity Act would create a federal excise tax on marijuana.
"This legislation doesn't force any state to legalize marijuana, but Colorado and the 18 other jurisdictions that have chosen to allow marijuana for medical or recreational use deserve the certainty of knowing that federal agents won’t raid state-legal businesses," said Polis. "Congress should simply allow states to regulate marijuana as they see fit and stop wasting federal tax dollars on the failed drug war."
Blumenauer said, "We are in the process of a dramatic shift in the marijuana policy landscape. Public attitude, state law, and established practices are all creating irreconcilable difficulties for public officials at every level of government. We want the federal government to be a responsible partner with the rest of the universe of marijuana interests while we address what federal policy should be regarding drug taxation, classification, and legality."
The Ending Federal Marijuana Prohibition Act would:
• Remove marijuana from the Controlled Substances Act.
• Transfer the Drug Enforcement Administration’s authority to regulate marijuana to a newly renamed Bureau of Alcohol, Tobacco, Marijuana and Firearms, which will be tasked with regulating marijuana as it currently does alcohol.
• Require marijuana producers to purchase a permit, as commercial alcohol producers do, of which the proceeds would offset the cost of federal oversight.
• Ensure federal law distinguishes between individuals who grow marijuana for personal use and those involved in commercial sale and distribution.
• Allow states to choose to continue to prohibit marijuana production or use in their states and it would remain illegal to transport marijuana to a state where it is prohibited.
The Marijuana Tax Equity Act would:
• Impose a 50 percent excise tax on the first sale of marijuana, from the producer to the next stage of production, usually the processor.
• Impose, similar to the rules within the alcohol and tobacco tax provisions, an occupational tax on those operating in marijuana, with producers, importers and manufacturers facing an occupation tax of $1,000/a year and any other person engaged in the business facing an annual tax of $500/a year.
• Create civil penalties for failure to comply with taxing duties.
• Require the IRS to produce a study of the industry after two years, and every five years after that, and to issue recommendations to Congress to continue improving the administration of the tax.