The Legalization of Marijuana: Tax Issues and Costs to Employers

Abstract

This paper examines the implications of the changing legal environment relating to marijuana, specifically, tax-related issues and potential costs to employers with the resulting management issues. Tax issues such as unique sales and excise taxes on legalized marijuana, and proposed changes in the tax law in response to the legal changes regarding marijuana are discussed as well. The potential, hidden costs to employers are discussed such as the increased difficulty of maintaining a drug-free workplace, the increased cost of on-the-job accidents, and the cost of lost productivity; all of which lead to increased potential problems with management.