According to a report from the Washington Post, the state’s income tax law makes it difficult for dispensaries to operate in the state.
The Post cited an email from Attorney General Bob Ferguson, who is currently serving as the state tax commissioner, which stated, “We have identified an avenue to regulate medical marijuana businesses that do not qualify as a qualified medical marijuana business under state law.
The proposed new law would allow these entities to maintain a separate entity for medical use, but not for any other purpose.”
According to the Post, Ferguson told the Post that the law would also apply to other medical marijuana establishments that are not licensed by the state and would “be subject to state income taxes.”
It is unclear what impact this could have on dispensaries that are already operating in the Seattle area, as the Washington state tax code does not apply to them.
The marijuana industry is also currently facing an array of state and federal laws.
According to The Washington Post’s report, the U.S. Justice Department has filed a lawsuit against the state, claiming that the tax law is “anti-competitive, an unconstitutional tax.”
In addition, the DOJ has also filed a suit in federal court against the city of Seattle, which is also suing to stop the state from enforcing the tax.