[Congressional Record (Bound Edition), Volume 161 (2015), Part 2]
[Extensions of Remarks]
[Page 2367]
[From the U.S. Government Publishing Office, www.gpo.gov]




         INTRODUCTION OF THE MARIJUANA TAX REVENUE ACT OF 2015

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                          HON. EARL BLUMENAUER

                               of oregon

                    in the house of representatives

                       Friday, February 20, 2015

  Mr. BLUMENAUER. Mr. Speaker, today I am pleased to introduce the 
Marijuana Tax Revenue Act of 2015, legislation to create a federal 
excise tax on marijuana sales and move this industry out of the shadows 
and into the daylight. Over two-thirds of people live in a state or 
local jurisdiction that has decided that some aspect of marijuana use 
should be legally permitted. Thirty-four states and the District of 
Columbia have passed laws allowing for medical marijuana in some form 
and five jurisdictions, Colorado, Washington, Oregon, Alaska and the 
District of Columbia legalized the recreational use of small amounts of 
marijuana.
  National trends reflect those state efforts. More than 46 percent of 
Americans over the age of 18 have tried marijuana at least once and 
public opinion research reveals nearly half of the U.S. population 
supports legalization. Yet even as states and local governments have 
taken the lead in finding legal arrangements for marijuana, the federal 
government spends billions of dollars per year on incarceration and 
enforcement associated with federal marijuana laws.
  In addition, many marijuana businesses around the country--despite 
operating in compliance with state or local law--are not allowed to 
deduct their legitimate business expenses and often are unable to make 
deposits or maintain accounts as a result of federal banking laws.
  It is time for Congress to end the federal prohibition on marijuana, 
remove it from the Controlled Substances Act, and create a tax and 
regulatory framework similar to the frameworks in place for alcohol and 
tobacco. This represents a unique opportunity to save ruined lives, 
wasted enforcement and prison costs, while simultaneously helping to 
create a new industry, with new jobs and revenues that will improve the 
federal budget outlook.
  The Marijuana Tax Revenue Act of 2015 phases in an excise tax on the 
sale of marijuana by a producer (generally the grower) to the next 
stage of production (generally the processor creating the useable 
product). This tax is phased in over five years following legalization. 
It starts at 10% and grows to 25%. The bill requires occupational taxes 
for those operating marijuana businesses. Those who do not comply with 
the taxation laws face civil or criminal penalties similar to those in 
place for the tobacco industry. The bill requires the IRS to produce 
periodic studies of the industry and make recommendations to Congress. 
Medical marijuana is exempt from these excise taxes.
  As I work with my colleagues and with stakeholders to move forward 
with this legislation, I emphasize that there remain significant 
questions and challenges. In particular, in the context of legislation, 
significant changes will ripple through the marijuana industry, with 
new products created, new business relationships developed, new 
consumer standards demanded, and wide variations in state and local 
laws. As this process evolves, we hope to work with the industry to 
ensure that the tax rate and framework appropriately reflects federal 
concerns and the needs of this developing industry. I am committed to 
ensuring that the legislation's terms are adequately tailored to 
reflect the realities faced by marijuana businesses and consumers in an 
ever-shifting market.
  It is important to note that states will remain free to make 
decisions about marijuana policy. Paired with Representative Polis' 
``Regulate Marijuana like Alcohol Act'' this legislation establishes a 
starting point for laying out a federal regulatory and taxation 
framework for marijuana sales that are legal under state law.

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