By Dylan Zwicky
In May, the Vermont Legislature passed S.22, an act relating to penalties for possession of limited amounts of marijuana by adults 21 years of age or older. This set the stage for Vermont to be the first state in the country to legalize marijuana for recreational use through the legislative process, rather than through a ballot initiative.
On May 22, Governor Phil Scott vetoed S.22, citing concerns that the bill did not adequately address questions of impairment while driving, children’s health and safety, and mental health and substance abuse. The Governor noted that there is a path forward if the Legislature passes a legalization bill that addresses his concerns.
Legalization advocates in the Legislature are in the process of meeting with members of the administration to identify how the Legislature could redraft S.22 to accommodate the Governor’s concerns. The Legislature is scheduled to return to Montpelier on June 21 and 22 for a veto-override session on two unrelated bills. It remains to be seen whether lawmakers and the governor will come to an agreement on a path forward and whether House Republicans will agree to suspend rules, allowing a new bill to pass through the legislative process in just two days.
S.22 would have:
- Legalized the possession of up to an ounce of marijuana, two mature plants, and four immature plants, beginning July 2018.
- Created a study commission that would examine the implementation of a regulated market for marijuana, similar to the markets in other states.
Eight states and the District of Columbia currently have laws legalizing marijuana for recreational use. The chart below outlines how those eight states and D.C. have structured their laws.
| Key Dates | Tax | Possession & Home Grow | Retail Sales | Local Control | |
| Colorado | November 6, 2012 Colorado voters approved Proposition 64, legalizing the possession of marijuana for recreational use.
January 1, 2014 – Commercial sale went into effect. |
10 percent sales tax rate on top of the state’s 2.9 percent standard sales tax rate.
In addition, a 15 percent excise tax is assessed on wholesale transaction. This translated into nearly $200 million in marijuana tax revenue for the state in 2016. |
Coloradans can grow up to six plants, with as many as three plants flowering at any one time. Counties and municipalities can pass stricter laws.
Adults over 21 can gift up to one ounce of marijuana to another adult 21 years or older, but can’t sell marijuana. This includes homegrown product. |
Adults 21 year of age and older may purchase and possess up to one ounce of marijuana at a time. | Local cities can choose whether marijuana shops are allowed. |
| Washington | November 6, 2012 – Washington Voters approved Initiative 502.
July 8, 2014 – Recreational sales began. |
Excise tax of 37 percent. | Home cultivation is now allowed. | Adults 21 years of age and over can purchase up to one ounce of marijuana, 16 ounces of edibles in solid form, 72 ounces in liquid form, and 7 grams of marijuana concentrates. | Cities, towns, and counties can choose to prohibit or designate appropriate zones for state-licensed marijuana businesses. |
| Oregon | November 4, 2014 Oregon voters approved the legalization of recreational marijuana.
July 1, 2015 – Legalization went into effect. |
The legislature set base tax rate at 17 percent, but cities and counties can adopt ordinance that add up to three percent more. | Individuals 21 years of age and older can possess up to 8 ounces of marijuana and grow no more than 4 total marijuana plants. | Individuals can purchase up to an ounce of marijuana, 16 ounces of marijuana in solid form, or 72 ounces of marijuana product in liquid form. | According to the Oregon Liquor Control Commission, nearly 100 cities and counties have prohibited the establishment of licensed marijuana producers, wholesalers and/or retailers. |
| California | November 8, 2016 – Proposition 64 approved by California voters. | 15 percent sales tax on top of a flat tax of $9.25 per ounce on flowers and $2.75 per ounce on leaves | Adults 21 and over can possess up to 1 ounce of marijuana or eight grams of cannabis concentrate, and grow up to six plants. | The deadline for the state to begin issuing retail licenses is January 1, 2018. | Proposition 64 allows for local regulation and taxation of marijuana. |
| Nevada | January 1, 2017 – Possession legal.
The department of taxes has until January 1, 2018 to craft regulations and licensing to allow stores to operate. |
Retail sales will be subject to the state’s 8 percent sales tax, as well as an additional 10 percent tax.
Wholesale products will incur a 15 percent tax. |
Adults 21 years of age and over can possess up to 1 ounce of marijuana. | The Department of taxes has until January 2018 to craft regulations and licensing to allow store to operate.
The number of retail locations will be limited by counties’ populations. |
Cities and counties cannot prohibit individual possession but can adopt and enforce local marijuana control measures for marijuana establishments. |
| Maine | January 30, 2017 – Possession legal.
February, 2018 – Retail and social establishments |
10 percent sales tax | Individuals 21 years and over are allowed to have 6 mature plants, 12 immature plants, and an unlimited number of seedlings.
An individual may possess up to 2.5 ounces of marijuana. |
The law allows for state-licensed clubs where customers can use marijuana in a social setting.
Retail and social establishments will not be allowed until at least February 2018. Maine legislators implemented a moratorium on retails sales to allow time to set up a licensing and regulatory framework. |
Communities can restrict the locations of businesses or ban them entirely. |
| Massachusetts | November 8, 2016 – Massachusetts voters approve Question 4. | Up to 12 percent: 6.25 percent sales tax, 3.75 excise tax, and a 2 percent “local option” tax. | Up to 1 ounce in public and up to 10 ounces at home.
Legal to grow up to 6 plants per individual and 10 plants per household |
Retail locations are scheduled to open in July, 2018 (The date was originally January, 2018 but Gov. Baker signed a bill in January, 2017 delaying certain parts of marijuana legalization for 6 months. | Current law requires municipalities to allow marijuana stores unless voters pass a referendum that bans sales. |
| Alaska | November 4, 2014 – Alaska voters approve Ballot Measure 2.
February 24, 2015 – Ballot Measure 2 goes into effect, allowing Alaskans age 21 and over to possess marijuana. |
Flat tax of $50 per ounce. | Adults 21 years of age and over can possess up to 1 ounce of marijuana and grow up to 6 plants, with 3 or fewer being mature.
Adults can harvest no more than 4 ounces from their own home |
Retail sale of marijuana is allowed. The Marijuana Control Board continues to consider how best to regulate consumption outside private residences. | A local government may prohibit the sale or importation for sale of marijuana and any marijuana product and the operation of any marijuana establishment through the enactment of an ordinance or by a voter initiative. |
| District of Columbia | November 4, 2014 – Voters approved Initiative 71.
The law went into effect on February 26, 2015. |
No sales are allowed so D.C. collects no tax revenue from marijuana. | Initiative 71 permits the use of 2 ounces of marijuana and cultivation of up to three marijuana plants. | The sale of marijuana remains illegal in D.C. |