Washington State has a paradox around its legalization of marijuana. The state legalized the drug, but few cities have legal businesses selling pot. The state hopes to stop the problem by sharing revenue from the sale of marijuana with cities that welcome pot businesses.
Washington wants to emulate a similar law in Colorado, the only other state that legalized recreational marijuana. The law shares tax revenue from the sale of marijuana with cities that allow marijuana dispensaries.
Kevin Bommer, the deputy director of the Colorado Municipal League, said the measure was a success in Colorado.
“It definitely made a difference,” he said Monday. “Without it, you would not have as many municipalities in Colorado approving retail marijuana sales.”
In Poulsbo, Washington, voters approved the legal pot law, but the city banned marijuana businesses. Councilman Ed Sterns said the ban was because of the lack of revenue sharing through marijuana sales. Sterns said he’d want Poulsbo to reconsider its ban if revenue were shared with the city like sales of liquor.
“The impacts are entirely local — planning, permitting, inspection and most importantly good community policing,” said Sterns. “Those impacts are partly mitigated by revenue sharing.”
Since legal marijuana stores opened in Washington after the drug was legalized, the state has collected $20 million in taxes. In Colorado, sales taxes on pot were $50 million in the first year of legalization. Almost $6 million were given back to local governments.
Under I-502, the legal marijuana law in Washington State, tax money was dedicated largely to health care. Republican Sen. Ann Rivers, wants to split the funds among the cities in Washington that allow pot businesses. A Democratic senator Karen Keiser wants funds to go to healthcare.
The issue is one of many facing lawmakers about legal marijuana- how to regulate a previously hidden business that is now one of America’s mainstream booming businesses.
