Three discount cigarette manufacturers on Thursday filed a federal lawsuit seeking to prevent a key element of Proposition EE from taking effect if the measure on the November ballot is approved by voters.
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Baltimore City Council President Brandon Scott is proposing a tax on electronic cigarettes as a way to discourage smoking and boost revenue as the coronavirus pandemic continues to devastate the city’s economy.
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Two measures the Oregon Legislature placed on the Nov. 3 ballot for Oregonians to vote on include limiting campaign contributions and increasing tax on cigarettes, as well as creating a tax on electronic cigarettes.
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The price of cigarettes in Amherst County is set to go up in mid-2021 through a newly approved tax, a measure county officials estimate will yield $1 million or more in annual revenue.
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While ruby red South Dakota may not be a swing state in the presidential election -- it may be at the forefront of the green revolution as one of five states where recreational and medical marijuana legalization are up for a vote this election year. And it is the only state where both forms of legalization will be on the ballot. Matthew Schweich, the deputy director of the nonprofit group the Marijuana Policy Project, which has been running campaigns across the country to legalize, told ABC News this is the first time in U.S. history that a state has had two ballot measures to ask voters for approval for recreational and medical marijuana during an election year. While there is some opposition from Republican Gov. Kristi Noem and South Dakota business owners over the recreational ballot, Schweich noted that more than 50,000 residents signed on to that initiative and more than 30,000 signatures for the medical provision. "I think that COVID has absorbed a great deal of the public's attention from marijuana reform, but there is still interest in the issue," he told ABC News. "It's remarkable since South Dakota has always been seen as this strong conservative state." Schweich and other experts say that the ballot initiatives in South Dakota as well as Montana, Arizona, New Jersey and Mississippi, could have major outcomes for the rest of the country since it would put pressure on state and national leaders to address their antiquated drug laws. "If we're successful it will send a message to Congress that they need to address the discrepancy between the state and federal laws on marijuana," Schweich said.
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San Diego has filed its first lawsuit based on a failure to pay the city’s cannabis tax, a new stream of revenue that city officials expect to climb to nearly $30 million annually during the next five years. The city filed suit against Grizzly Peak Farms for failure to pay tax on cannabis products the company delivered to dispensaries within the city from its cultivation facilities in Oakland between January 2018 and June 2019. With penalties and interest, San Diego officials say the company owes nearly $10,000 to the city. The city’s tax rate on cannabis businesses increased from 5 percent to 8 percent in July 2019. The new revenue stream from cannabis taxes could help soften budget cuts the city is expected to face in coming months because of the COVID-19 pandemic, which has sharply reduced sales tax and hotel tax revenue because of decreased tourism. Dave Gash, a San Diego developer and the owner of Grizzly Peak, said Wednesday that failure to pay the tax was an oversight resulting from confusion, and that the company planned to pay its city tax bill immediately. “It really kind of slipped through the cracks,” Gash said. “It’s legitimate, but it’s a weird city tax. We never heard about it, so it was weird to us.” Gash is referring to San Diego’s cannabis tax extending beyond businesses selling and cultivating cannabis within the city. The tax also must be paid by cannabis businesses located elsewhere, if they supply cannabis products to businesses within the city. Leaders of the local cannabis industry say San Diego taxing out-of-town suppliers has led to lots of grumbling, but that Grizzly Peak appears to be the first company to fail to pay the tax. Gash said he only got one notice that his company owed cannabis tax to the city. “They haven’t been calling us about this or sending us notices,” he said. San Diego’s approach to cannabis taxes, which some other cities also use, forces cities to use a process called “apportionment” to divide up a cannabis company’s revenues so each city can tax the appropriate portion of the revenue. Jessica McElfresh, one of San Diego’s leading cannabis lawyers, said San Diego’s cannabis tax legislation has some confusing elements, partly because it was modeled on legislation from other cities. But McElfresh said the city treasurer’s office, which handles collection of the tax, has been friendly and helpful with cannabis businesses during the early years of the tax, which was approved by city voters in November 2016. Gash had been planning to open an indoor cannabis cultivation facility in Kearny Mesa, which would have allowed Grizzly Peak to supply the city’s dispensaries with cannabis grown locally. But he said delays and other problems prompted him to sell the site. Gash said he still plans to open a cannabis distribution facility in Kearny Mesa, possibly by this winter. In addition to out-of-town suppliers, the city’s cannabis tax applies to more than 20 licensed dispensaries in San Diego and more than a dozen licensed cultivation facilities. Dispensaries must charge a sales tax to recreational marijuana customers and remit that tax to the state, county and city. Medical cannabis customers with a state identification card don’t have to pay sales tax. In addition to Grizzly Peak, Gash also owns Gold Coast Design, which did notable remodels on the sports arena’s Arena Club in 2009 and the Spreckels Theatre downtown.
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Millions of Americans will head to the polls in the coming days and cast votes on whether or not to legalize the use of marijuana in their states. If past is precedent, most — if not all — of these statewide ballot measures will be enacted into law. Beginning with California in 1996, voters in multiple jurisdictions nationwide have voted well over two-dozen times on Election Day in favor of marijuana legalization measures. Currently, 34 states and the District of Columbia have laws on the books regulating the production and dispensing of medical cannabis to qualified patients. Eleven of these states — encompassing one-quarter of the U.S. population — also have legalized the possession and use of marijuana by anyone over the age of 21. In nine of these 11 states, adult-use legalization measures were enacted by a direct vote of people. About half of all statewide medical cannabis laws were enacted via voter initiative. This long and consistent history of success at the ballot box should hardly be surprising. According to nationwide polling data compiled by Gallup, two-thirds of Americans — including majorities of Democrats, Republicans, and Independents — believe that marijuana consumption by adults ought to be legal in the United States. On the issue of legalizing cannabis for medical use, support is even stronger. National polling data compiled by Quinnipiac University found that 91 percent of voters believe that adults should access and use medical marijuana when their physician authorizes it.
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As the Garden State heads into this pivotal election more than just the presidency hangs in the balance — this year, voters will finally have the chance to say whether the state should legalize adult-use cannabis. Polling continues to show strong support for legalization in New Jersey, but given the challenges of vote-by-mail and many voters unaware of referenda on the back of their ballots, nothing is certain. Still, if New Jersey does embrace legalization, the question of what it will look like will end up in the hands of legislators and regulators. With this in mind, on Oct. 27 NJ Cannabis Insider will host “Countdown to Legalization” presented by Brach Eichler, a virtual forum focused on the challenges and opportunities awaiting legislators, regulators, entrepreneurs, patients and consumers if legalization finally becomes a reality. Sponsors supporting this event include, The Cerealia Group, Foley Hoag and The BGill Group. The two-hour program begins at 1 p.m. Reserve your tickets here. State Sen. Nicholas Scutari, the state lawmaker who’s been advocating for the expansion of medical marijuana, legalization of adult-use cannabis and a force behind ensuring social justice prevails after the plant is legalized in the Garden State, will launch the program with prepared remarks and a Q&A with event host Justin Zaremba, NJ Cannabis Insider’s lead reporter. The remainder of the program are discussions framed around what New Jersey could learn from states where recreational cannabis is already legal, and where the industry can go once the state adopts regulations to sell cannabis to adult consumers.
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April Curatti invested thousands of dollars into a plot of hemp at her Marysville farm only to be told she couldn’t sell the crop after a test showed its THC levels were too high. “We know all the risks involved,” Curatti said, but she still described the experience as devastating. Her story isn’t uncommon as Ohio’s first hemp crops approach maturity. Under state and federal law, hemp must contain less than .3% of THC, or Tetrahydrocannabinol, the intoxicating ingredient in marijuana. Otherwise, the crops must be destroyed. As of Oct. 13, the Ohio Department of Agriculture had tested 284 hemp samples, 20 of which came back “hot,” meaning they surpassed .3% THC level. Six samples were retested at the request of the farmer, and three of them tested under .3% the second time around.
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Since 2012, 11 states have legalized marijuana use for adults — which voters nationwide are considering on their ballots this year. Researchers are just beginning to understand the effects of those laws. Colorado and Washington were the first states to legalize the drug, and California, the most populous state in the nation, followed them. Among the most pointed concerns with legalization are whether it has caused more young people to use the drug and whether more people are dying in auto crashes caused by impaired drivers. Data show little change in either area. Surveys of young people in Colorado, for example, show a slight decline in the percentage of middle and high school students using the drug. In Washington, the rates have remained the same. Opponents of legalization say the risk is too great if young people are given the impression that marijuana is not harmful, or if drivers become lax about getting behind the wheel when they are high. States with legalized marijuana are finding more drivers impaired by the drug, but that comes in part because they are looking harder for it. Colorado, for example, did not track the level of marijuana impairment of drivers suspected of using it until 2016. Washington saw an increase in drugged driving before legalization that continued after the drug was permitted, and has seen more fatal accidents with people on multiple substances. California data shows an increase in people driving while on drugs involved in fatal accidents.
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