News

Federal lawsuit: Can Washington tax marijuana?

Federal lawsuit: Can Washington tax marijuana?

Photo: KGMI

AP News

SEATTLE, Wash. – A federal lawsuit is challenging Washington state’s authority to tax marijuana as long as marijuana remains illegal under federal law.

The case arises from the state’s attempt to collect sales taxes from a medical marijuana dispensary, but the lawyer who filed it late Thursday says it has implications for Washington’s ability to collect taxes under its scheme for the production and sale of recreational marijuana, too.

Douglas Hiatt is representing the dispensary operator, who is simultaneously being prosecuted for marijuana distribution and targeted for not collecting taxes on the pot he was allegedly distributing.

Hiatt says his client can’t pay the tax without incriminating himself in the criminal case.

The author of Washington’s recreational pot law, Alison Holcomb, disagrees.

She says she doesn’t expect the lawsuit to get very far.

Recent Headlines

in Entertainment

This weekend in entertainment history

seinfeld

A look back on some of Hollywood's most memorable headlines.

in Music

Colbie Caillat engaged

Colbie Caillat performing as part of the Star 94 Jingle Jam 2013 at The Arena at Gwinnett Center on Monday, Dec. 16, 2013, in Atlanta.

Colbie Caillat celebrated her 30th birthday with an engaged to her musician boyfriend.

in Entertainment

Netflix: What’s coming and going in June

netflix

Find out what you should watch this weekend and get a sneak peak at what's being added next month.

in Entertainment

REVIEW: The Earth quakes, cleavage shakes in ‘San Andreas’

17-overlay9

"San Andreas" is so over the top, Michael Bay might find it excessive.

in Viral Videos

Paralyzed student walks across stage at college graduation

10-overlay5

Injured playing football in 2010, Christopher Norton walked across the stage with help from his new fiancée.