Lawsuit challenges state's authority to tax marijuana

Lawsuit challenges state's authority to tax marijuana

Lawsuit challenges state's authority to tax marijuana

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by KING 5 News

KING5.com

Posted on May 10, 2014 at 5:09 PM

Updated Saturday, May 10 at 5:09 PM

A federal lawsuit is challenging the state's authority to tax marijuana.

The suit was filed by a Bellingham dispensary owner who is both being prosecuted criminally by the feds, and targeted by the state Department of Revenue.

Martin Nickerson is in trouble for not collecting and paying taxes on pot sales.
  
His attorney argues Nickerson can't pay the tax without incriminating himself since marijuana is still illegal under federal law.
  
The lawsuit challenges the U.S. District Court in Seattle to determine if taxing marijuana sales at the state level, conflicts with federal law.

If it is, the court could bar the state from collecting those taxes

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