MARIJUANA IN WASHINGTON AND COLORADO

Who profits in the sales for marijuana

Name

Instructor

Course

Date

 Describe the selected issue, opportunity, or problem facing the organization

The issues of legalizing marijuana to be used as recreation or medicinal use portray the actual legal in which the weed would be a bonanza for the cash-strapped states. In Colorado and Washington, this business started as a result of tax and regulation recreation of the weed sales together with medical marijuana legal in most of the other 18 states thus attributing to some hard numbers on industries value. Regarding this issue, Colorado collects more than $3.5 million dollars in taxes as well as fees from the recreation and medical marijuana sales. Much of the tax revenues come from the recreational pot. Colorado is identified as the first state which established the recreation pot sale. The Washington is another state with the same legal pot recreation and is much more expected to go high on sales (Boyd, 20134). The department of correlation and revenue monitors the revenue patterns which seem to emerge in pot sales due to the factors like the local approval licenses and potential of the legal pot novelty.

The opportunity of marijuana sale is well monitored under perspectives to which there are multiple layers of tax in place. Actually there is 10% state sales tax which is imposed on the retail sale of marijuana as well as marijuana products along 29% already exists in the state sale tax. The marijuana sale overpowers other products which are taxed in Colorado whereby the tax is on final consumer and is not easily considered in advertised price. The state keeps track of marijuana by regulating medical marijuana so as to offer the better opportunities in order to shun moratoriums (Benekos, 2006). The problem faced in the organization is the imposed licenses and fees in associate to medical marijuana whereby it outpace the retail marijuana in five to one factor. The other problem is how these organizations spends money hence there is no compliance of the high tax imposed because the consumers are purchasing and the official staffs indicates that those are targeted numbers in the marijuana market.

Proposing on who profit in the sales for marijuana in Washington & Colorado, its true that the Government states, counties and department of revenue gains much profits through taxation of the marijuana as well as issuing of licenses to the retails shop. Even though marijuana had been legalized to be used as medical, the two states Colorado and Washington have gone further by allowing marijuana sales for recreation use. The Department of revenue collects much money through national legal of marijuana and focus on the marijuana industry (Pollock, 2013). The twenty states within Washington DC have been identified to have legalized marijuana for medicinal use in regards to Colorado and Washington State voting in the year 2012 to legalized marijuana for the recreational use for adults. Colorado data has proved marijuana industry’s viability as the legal source of the tax revenue.

 Discuss the significance, scope, magnitude, and feasibility of finding a solution to the issue, opportunity, or problem

The significance that would give an actual solution is identified after crime fall as a result of Colorado tax revenue in regards to marijuana legalization. This illustrates that in Washington and Colorado, the legalization of marijuana might have drawn much of 42.1 billion dollars in revenue for the states from the new taxes of marijuana sales. Certainly, the projections are premature since no reports regarding the federal government. The scope shows that the Colorado and Washington are the most designed frameworks for regulating cultivation and sales of recreational marijuana hence getting profits (Kilmer, 2013). Unfortunately, the marijuana drug has potential in providing much more cash to the states which are emerging from recession and revenue stream which might emerge if feds block the recreational pots sales. In Washington, the sales of marijuana collected are estimated to be $2 billion within five years but the state faces projection of $900 million budget shortfall. In Colorado, the legalization of marijuana produces as much as $ 23 million within a period of year in revenue.

Considering marijuana legalization for recreation use in Colorado and Washington, the supporters sold the idea partially because it was based on new tax revenue. The Government in relation to department of revenue enforced the regulations in a way that the marijuana would be highly taxed. All levels of Government benefits from the recreation marijuana use since most of the states have legalized marijuana for the benefit use of medication as well as recreation use. The state is gaining profits from the Colorado and Washington marijuana tax sales (Pollock, 2013). The Colorado law study suggested that, the legalized marijuana produces $60 million per year in new revenue and savings for the Government state. In Washington, the state Government predicts the revenue could reach 1.9 billion over the five year to establish the marijuana market.

The Colorado and Washington states are therefore determined as the states which rely on marijuana consumption so as to set their revenue estimates and also profiting the Governmental states. The appropriate problem to overshadow the tax earned is the harder taxes which are collected because the marijuana sales are termed to be cash-only business. This is because it is cash at medical marijuana stores which are open in most of the states and it has to be identified as the new recreational marijuana stores (Boyd, 20134). This problem might even go on since no bank to approve credit card sales for the drug or even take deposits from transactions because marijuana is still illegal under the Federal law.

· Justify why the chosen issue, opportunity, or problem facing the organization is important to be researched and whether it can be solved with business research

The chosen issue is the marijuana market monitoring whereby it has to be strictly adhered that no underage youth involves in marijuana taking, no blatant adverts of marijuana to kids, no black market for marijuana and also no interstate trafficking. The black market for marijuana has to be monitored so as to curb the criminal cartels from running the operations and all transactions to be regulated, assessed and put into control. The marijuana profit is within Colorado states whereby it collects $3.5 million from the first marijuana sales. The Colorado department of revenue collects taxes and fees from marijuana sales of medical weed thus attributing to the state income generated by the sales of marijuana. Colorado is popularly known to be first state in America to legalize recreational use of marijuana and went on crafting regulation framework to tax, enforce and license its use. The legal of marijuana is also known to bring the new revenue to the cash-strapped counties besides costing them too much. The problem identified is the prohibition inflation which is built into the current marijuana prices by the sellers (Benekos, 2006). The risk includes individual facing arrest, being seized and also being prosecuted. In regards to the profit benefits, the total taxes, fees and licenses for both medicinal and the recreational marijuana in Colorado ranges $ 3.5 million. It is true that, the problem involved in legalized marijuana is not possible to be solved through business research because there are department which deal with the business by enforcing laws and monitoring the cultivation of marijuana from seed to market sales.

References

Boyd, S. C., & Carter, C. (2014). Killer weed: Marijuana grow ops, media, and justice.

Benekos, P. J., & Merlo, A. V. (2006). Crime Control, Politics and Policy (1st edition title: What's Wrong with the Criminal Justice System: Ideology, Politics and the Media). Burlington: Elsevier Science.

Pollock, J. M. (2013). Criminal law. Waltham, MA: Anderson.

Kilmer, B., Caulkins, J. P., Midgette, G., Dahlkemper, L., MacCoun, R. J., & Rosalie, L. P. (2013). Before the Grand Opening: Measuring Washington State's Marijuana Market in the Last Year Before Legalized Commercial Sales. Santa Monica: RAND Corporation