black holes and gray matter. in one thousand tangos.

             
“So far 20 states and the District of Columbia have legalized the use of marijuana for medical or recreational purposes, but with the rise of the legal pot business has come a wave of robberies and other crimes targeting pot dispensaries and their owners. The purveyors of legal pot are a major crime magnet, in part because they largely operate on a cash-only basis. And that’s due to the fact that most banks and credit card firms refuse to work with these businesses for fear of being prosecuted under federal law, where the sale of pot remains illegal. …

MrJones is one of the three founders of PotCoin, which launched earlier this year. They have so far kept their identities secret, but they are developers who claim to have nationally recognized startups under their belts. They’re planning to unmask themselves at a cryptocurrency convention in April. 
'I guess anyone with an MBA and a love for crypto could have seen the opportunity, …This is an industry stigmatized unjustly for too long, first by lawmakers way back, now by bankers…Our business model is woven into the fabric of the loyal community, the commodity at large and the industry under attack.​’ 
PotCoin works similarly to bitcoin, the most popular digital currency. Someone interested in buying or selling marijuana starts by downloading an online “wallet.” There are then three ways to fill that wallet with PotCoins: People can pay you with the currency, you can purchase it on an exchange using bitcoin or US dollars, or you can ‘mine’ new PotCoins (a complicated process that is described in more detail here). The current exchange rate for PotCoin, as of March 24, is about .00179 PotCoins per $1. The transaction fee for using PotCoins is negligible, and MrJones claims that PotCoin’stransaction time is considerably faster than bitcoin’s. (A bitcoin purchase can take up to an hour to process.) The goal, he says, is for PotCoin to be as easy to use as swiping a credit card.”
Enter the PotCoin | MoJo

So far 20 states and the District of Columbia have legalized the use of marijuana for medical or recreational purposes, but with the rise of the legal pot business has come a wave of robberies and other crimes targeting pot dispensaries and their owners. The purveyors of legal pot are a major crime magnet, in part because they largely operate on a cash-only basis. And that’s due to the fact that most banks and credit card firms refuse to work with these businesses for fear of being prosecuted under federal law, where the sale of pot remains illegal. …

MrJones is one of the three founders of PotCoin, which launched earlier this year. They have so far kept their identities secret, but they are developers who claim to have nationally recognized startups under their belts. They’re planning to unmask themselves at a cryptocurrency convention in April

'I guess anyone with an MBA and a love for crypto could have seen the opportunity, …This is an industry stigmatized unjustly for too long, first by lawmakers way back, now by bankers…Our business model is woven into the fabric of the loyal community, the commodity at large and the industry under attack.​’ 

PotCoin works similarly to bitcoin, the most popular digital currency. Someone interested in buying or selling marijuana starts by downloading an online “wallet.” There are then three ways to fill that wallet with PotCoins: People can pay you with the currency, you can purchase it on an exchange using bitcoin or US dollars, or you can ‘mine’ new PotCoins (a complicated process that is described in more detail here). The current exchange rate for PotCoin, as of March 24, is about .00179 PotCoins per $1. The transaction fee for using PotCoins is negligible, and MrJones claims that PotCoin’stransaction time is considerably faster than bitcoin’s. (A bitcoin purchase can take up to an hour to process.) The goal, he says, is for PotCoin to be as easy to use as swiping a credit card.”

Enter the PotCoin | MoJo

Washington State to Start Selling Pot in June
Washington State Liquor Board has received a total of 7,046 applications, with 2,206 for retail which they will limit to 334.
The cannabis will be priced at $3 per gram for producers, $6 for processors and a pre-tax $12 per gram for retailers. “The board anticipates tax revenue of up to $2 billion during the first five years as a result of a 25% tax on each level. That’s right, ultimately this cannabis will have been taxed 75% by the time it reaches the customer.”

Washington State to Start Selling Pot in June

Washington State Liquor Board has received a total of 7,046 applications, with 2,206 for retail which they will limit to 334.

The cannabis will be priced at $3 per gram for producers, $6 for processors and a pre-tax $12 per gram for retailers. “The board anticipates tax revenue of up to $2 billion during the first five years as a result of a 25% tax on each level. That’s right, ultimately this cannabis will have been taxed 75% by the time it reaches the customer.”

“Nearly half of U.S. states have legalized marijuana in some form, whether medical or recreational. But marijuana remains illegal under federal law, and as a result, the legitimate businesses selling the drug are subject to sky-high tax rates.
Dispensaries can’t deduct traditional business expenses like advertising costs, employee payroll, rent and health insurance from their combined federal and state taxes. That means dispensary owners around the U.S. often face effective tax rates of 50 to 60 percent — and in some states, those rates soar to 80 percent or higher …
In other words, the federal government rakes in tax revenue from pot shops while prohibiting them from accessing the same financial benefits afforded to non-cannabis businesses. …
Federal tax code 280E, an antiquated Internal Revenue Service rule enacted in the 1980s under President Ronald Reagan’s War on Drugs campaign, explicitly prohibits any deduction from any business that ‘consists of trafficking in controlled substances.’ Marijuana is currently listed alongside heroin and LSD as a Schedule I narcotic under the Controlled Substances Act. …
'All we want is to be treated like other businesses,' said Mike Elliott, executive director for the Medical Marijuana Industry Group which represents marijuana businesses in Colorado. 'The federal government doesn’t recognize our businesses as being legitimate, but they do demand our taxes. It’s really unfair treatment.' …
“More than one dispensary owner, who requested anonymity when speaking about specific financial issues, told HuffPost that they estimated by the end of the year, they’ll be paying more than $1 million in sales tax to the federal government. And for some businesses, that tax is in cash.”
“More than a dozen states are expected to legalize marijuana in the the coming years. One recent study has projected a $10 billion legal marijuana industry nationwide by 2018.”
The Feds Won’t Legitimize Pot, But They’ll Still Tax The Hell Out Of It | HuffPo

Nearly half of U.S. states have legalized marijuana in some form, whether medical or recreational. But marijuana remains illegal under federal law, and as a result, the legitimate businesses selling the drug are subject to sky-high tax rates.

Dispensaries can’t deduct traditional business expenses like advertising costs, employee payroll, rent and health insurance from their combined federal and state taxes. That means dispensary owners around the U.S. often face effective tax rates of 50 to 60 percent — and in some states, those rates soar to 80 percent or higher …

In other words, the federal government rakes in tax revenue from pot shops while prohibiting them from accessing the same financial benefits afforded to non-cannabis businesses. …

Federal tax code 280E, an antiquated Internal Revenue Service rule enacted in the 1980s under President Ronald Reagan’s War on Drugs campaign, explicitly prohibits any deduction from any business that ‘consists of trafficking in controlled substances.’ Marijuana is currently listed alongside heroin and LSD as a Schedule I narcotic under the Controlled Substances Act. …

'All we want is to be treated like other businesses,' said Mike Elliott, executive director for the Medical Marijuana Industry Group which represents marijuana businesses in Colorado. 'The federal government doesn’t recognize our businesses as being legitimate, but they do demand our taxes. It’s really unfair treatment.' …

More than one dispensary owner, who requested anonymity when speaking about specific financial issues, told HuffPost that they estimated by the end of the year, they’ll be paying more than $1 million in sales tax to the federal government. And for some businesses, that tax is in cash.”

More than a dozen states are expected to legalize marijuana in the the coming years. One recent study has projected a $10 billion legal marijuana industry nationwide by 2018.”

The Feds Won’t Legitimize Pot, But They’ll Still Tax The Hell Out Of It | HuffPo

Everything you need to know about Colorado’s recreational marijuana law
Consumers
"People with a Colorado ID can buy up to an ounce of marijuana at a time. People with an out-of-state ID can buy up to a quarter ounce." 
BUT, “There’s nothing in the state’s rules for recreational marijuana stores that requires them to track customer purchases.”
Personal information
According to Amendment 64: “The department shall not require a consumer to provide a retail marijuana store with personal information other than government-issued identification to determine the consumer’s age, and a retail marijuana store shall not be required to acquire and record personal information about consumers other than information typically acquired in a financial transaction conducted at a retail liquor store.”
Consumption
Anywhere cigarette smoking is banned, so is pot. You cannot smoke it in stores, parks, ski slopes, or national parks; basically, anywhere in public. Taking marijuana out-of-state is still illegal, even if you’re traveling to another legal-marijuana state, and if you send it through USPS, you can face federal charges. You can however transport it in your car as long as you’re not smoking it.
The Feds
President Obama has stated that the feds won’t arrest individual users in Colorado and Washington. But, the DOJ has identified eight things it’s most concerned about, which include “preventing marijuana distribution to minors” and “preventing money from sales from going to criminal groups”.
Regulating stores
The state rulebook for stores is 136 pages long, and includes a $1.2 million seed-to-sale tracking system called MITS. 
"Every plant that a commercial grower sticks in dirt gets a radio-frequency tag that moves with the plant through its lifecycle. Once the marijuana is harvested, everything is weighed, then it’s weighed again after drying out and at other points during processing until it’s all packaged up to leave the grow. … At the shop, store owners are required to weigh their inventory every day. All of this data is entered into MITS."
However, “it’s up to the state’s pot auditors to actually scour the books and make sure it all matches up.”
Jobs
“The state Marijuana Enforcement Division is budgeted for 25 criminal investigators and six to eight compliance investigators. Considering that there will likely be hundreds of recreational marijuana stores, state officials say investigators will use the data in MITS as part of a risk-based enforcement approach, rather than making consistent, frequent checks at all stores, grows and infused-products businesses.”
Cost
An ounce can run anywhere from $150-$300, but don’t forget to add sales tax, special state sales and excise taxes, plus extra city sales and excise taxes which can add up to 29%.
State revenues
"The state’s nonpartisan voter guide — in estimating the revenues from marijuana tax measures — projected nearly $400 million a year in recreational marijuana sales. Considering that medical-marijuana stores, alone, did almost $330 million in sales in fiscal year 2013, that number might be low.”
Read on.

Everything you need to know about Colorado’s recreational marijuana law

Consumers

"People with a Colorado ID can buy up to an ounce of marijuana at a time. People with an out-of-state ID can buy up to a quarter ounce."

BUT, “There’s nothing in the state’s rules for recreational marijuana stores that requires them to track customer purchases.”

Personal information

According to Amendment 64: “The department shall not require a consumer to provide a retail marijuana store with personal information other than government-issued identification to determine the consumer’s age, and a retail marijuana store shall not be required to acquire and record personal information about consumers other than information typically acquired in a financial transaction conducted at a retail liquor store.”

Consumption

Anywhere cigarette smoking is banned, so is pot. You cannot smoke it in stores, parks, ski slopes, or national parks; basically, anywhere in public. Taking marijuana out-of-state is still illegal, even if you’re traveling to another legal-marijuana state, and if you send it through USPS, you can face federal charges. You can however transport it in your car as long as you’re not smoking it.

The Feds

President Obama has stated that the feds won’t arrest individual users in Colorado and Washington. But, the DOJ has identified eight things it’s most concerned about, which include “preventing marijuana distribution to minors” and “preventing money from sales from going to criminal groups”.

Regulating stores

The state rulebook for stores is 136 pages long, and includes a $1.2 million seed-to-sale tracking system called MITS. 

"Every plant that a commercial grower sticks in dirt gets a radio-frequency tag that moves with the plant through its lifecycle. Once the marijuana is harvested, everything is weighed, then it’s weighed again after drying out and at other points during processing until it’s all packaged up to leave the grow. … At the shop, store owners are required to weigh their inventory every day. All of this data is entered into MITS."

However, “it’s up to the state’s pot auditors to actually scour the books and make sure it all matches up.”

Jobs

The state Marijuana Enforcement Division is budgeted for 25 criminal investigators and six to eight compliance investigators. Considering that there will likely be hundreds of recreational marijuana stores, state officials say investigators will use the data in MITS as part of a risk-based enforcement approach, rather than making consistent, frequent checks at all stores, grows and infused-products businesses.”

Cost

An ounce can run anywhere from $150-$300, but don’t forget to add sales tax, special state sales and excise taxes, plus extra city sales and excise taxes which can add up to 29%.

State revenues

"The state’s nonpartisan voter guide — in estimating the revenues from marijuana tax measures — projected nearly $400 million a year in recreational marijuana sales. Considering that medical-marijuana stores, alone, did almost $330 million in sales in fiscal year 2013, that number might be low.”

Read on.

How Hash Oil Is Blowing Up Across the U.S. — Literally | Wired
Last week, FEMA posted a rather unexpected alert in its emergency services bulletin titled “Hash Oil Explosions Increasing Across US.” Alongside more quotidian warnings of cyber terrorism and industrial vapor clouds, it described an uptick in explosions at apartments and hotel rooms involving “a process using butane to extract and concentrate compounds from marijuana,” destructive incidents that FEMA warned could even be mistaken for pipe bomb or meth lab explosions.
Wait, marijuana-based explosions?

How Hash Oil Is Blowing Up Across the U.S. — Literally | Wired

Last week, FEMA posted a rather unexpected alert in its emergency services bulletin titled “Hash Oil Explosions Increasing Across US.” Alongside more quotidian warnings of cyber terrorism and industrial vapor clouds, it described an uptick in explosions at apartments and hotel rooms involving “a process using butane to extract and concentrate compounds from marijuana,” destructive incidents that FEMA warned could even be mistaken for pipe bomb or meth lab explosions.

Wait, marijuana-based explosions?

There’s been relatively little analysis of what a legal marijuana industry might look like. One key but little-appreciated fact is that, according to persuasive research by Jonathan Caulkins, Angela Hawken, Beau Kilmer, and Mark Kleiman in their new book Marijuana Legalization: What Everyone Needs To Know, is that legal pot would be amazingly cheap. In fact, midgrade stuff would be so cheap that it might make sense for businesses to give it away like ketchup packets or bar nuts.

Conventional thinking about pot pricing is often dominated by people’s experience buying weed in legal or quasi-legal settings such as a Dutch “coffee shop” or a California medical marijuana dispensary. But this is badly misleading. Neither California nor the Netherlands permit growing or wholesale distribution of marijuana as a legal matter. If pot were fully legal, its growth, distribution, and marketing would work entirely differently. […]

How cheaply could pot be grown with advanced farming techniques? One potential data point is Canada’s industrial hemp industry, where production costs are about $500 per acre. If the kind of mid-grade commercial weed that accounts for about 80 percent of the U.S. market could be grown that cheaply, it implies costs of about 20 cents per pound of smokable material: Enough pot to fill more than 800 modest-sized half-gram joints for less than a quarter!. Those numbers are probably optimistic, since in practice recreational marijuana is grown from more expensive transplanted clones rather than from seeds. Even so, the authors note that “production costs for crops that need to be transplanted, such as cherry tomatoes and asparagus, are generally in the range of $5,000-$20,000 per acre.” That implies costs of less than $20 per pound for high-grade sensimilla and less than $5 a pound for mid-grade stuff. Another way of looking at it, suggested by California NORML Director Dale Gieringer, is that we should expect legal pot to cost about the same amount as “other legal herbs such as tea or tobacco,” something perhaps “100 times lower than the current prevailing price of $300 per ounce—or a few cents per joint.”

This would make pot far and away the cheapest intoxicant on the market, absolutely blowing beer and liquor out of the water. Joints would be about as cheap as things that are often treated as free. Splenda packets, for example, cost 2 or 3 cents each when purchased in bulk.”

Get High for Free | Slate

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