Vanek suggests pot tax revenue could go to non-shop towns

Colfax Mayor Todd Vanek wants to see a portion of the state’s marijuana retail sales tax benefit Colfax. Stating that Colfax sees the impacts of legal marijuana sales, the mayor said he hopes to see some of the sales tax revenue come here.

“The possibility is up to the legislature, but we are obviously a corridor that has to deal with potentially impaired drivers,” Vanek said.

He added it is difficult to tell how exactly Colfax has been impacted since marijuana retail stores have operated in and around Pullman with the legalization of recreational marijuana.

“Right now, it’s hard to prove the effects because we don’t have the technology,” Vanek said.

Vanek brought up the topic briefly at the Pullman City Council meeting Tuesday, Dec. 20. Ninth District Representative Mary Dye and Senator Mark Schoesler attended the meeting and discussed a number of issues. Vanek suggested proceeds from legal marijuana sales should not just go to cities where the shops are located.

Under state legislation, all retail licensees are required to remit to the state’s cannabis board an excise tax of 37 percent on all marijuana sales. In 2016, Pullman shops generated $6 million in marijuana retail sales, generating approximately $2 million in excise tax. Pullman has four shops – MJ’s Pot Shop, We’re Just Buds, Satori and Pablo & Co., LLC. Under state law, Pullman is allowed five marijuana retailers, and the county is allowed two at large. Both of those are near Pullman.

The Bud Hut opened in July on the Moscow-Pullman Highway, and Premium Roast LLC is in the process of establishing another shop at the former Crossroads Nursery on the Moscow-Pullman Highway. Statistics were not available for retail sales and tax revenue generated by Bud Hut.

Vanek said if more shops were allowed in the county, Colfax could entertain the idea of having one here.

“We’d have to get a request first,” he said. No requests have ever been filed by an applicant for a shop in Colfax.

The mayor noted the city council two years ago passed zoning ordinances for the potential of a marijuana retail store here. If an application was received and a shop allowed, it would have to be set up within designated zones,.

Sen. Schoesler told the Gazette last Thursday, Dec. 22, he does not see Pullman wanting to share marijuana tax revenue with other Whitman County communities.

“I don’t think they’re going to be very eager to give it up,” he said. “All of our cities are looking for revenue. I’ve never seen cities really want to share their revenue with other cities.”

Schoesler said he expects the legislature will discuss how to allocate the marijuana tax revenue in its upcoming session. He said there are a number of areas to consider, including education.

“Fifty percent of our money already does go toward education, and that’s not going to change,” he said. “There’s a lot of different ideas of how to spend it.”

While no other Whitman County community has a marijuana retail shop, there are producers and processors throughout the county. One of those – RL Farms – is listed with a Colfax address, though it is outside of city limits. Other producers/processors are listed with addresses in St. John (Northwest Finest), Pullman (Ag Grow, Altered State and Interstate 502), Garfield (Koulee Kush), Rosalia (Squires Forest) and Endicott (Three G Farms, LLC). Producers and processors do not pay an excise tax to the state.