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Washington Sees Big Tax Bonus Due to Cannabis in 2014

As the first year of modern cannabis reform
comes to an end, there are clear winners and losers already. One of the first most interesting
developments however, is the active comparison of the

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As the first year of modern cannabis reform
comes to an end, there are clear winners and losers already. 

One of the first most interesting
developments however, is the active comparison of the two first state
“recreational” markets in Colorado and Washington State.

This month it appears, no matter what else
the two markets do, Washington State takes the clear lead in racking up taxes
from the new “rec only” vertical.  The
state may report as much as 67% more tax revenue than expected for its first
six months of operations while Colorado residents are expecting as much as a
30% reduction in the final end of year take.

There are many reasons for this situation,
the first being that Colorado did not abandon its medical users.  As of December, municipalities in Washington
State at least (including the city of Tacoma) seem poised to force medical
dispensaries into alliances with already regulated recreational outlets next
year.  There are those both inside and
outside the state who expect to see a rollup of the business here into a
recreational one with special taxes set asides for medical users.  The development of a two pronged system, like
the one in Colorado, is definitely being threatened by this new development.

These influences are clearly playing out in
the national debate already. Oregon legislators are already considering
following in Washington’s rather than Colorado’s direction in regards to the ballot
results in November of 2014.  Texas too,
will be debating the issue in its legislature next year, with an already
announced intention to keep taxes low.

However in a post “Great Recession” environment
where state budgets face billions of dollars in tax shortfalls, it may very
well be that the dire need for cash across the country will become a vital
factor in determining the next phase of the cannabis market nationwide.

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