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May 12, 2014

Federal lawsuit: Can state tax marijuana?

Associated Press

SEATTLE — A federal lawsuit is challenging Washington state's authority to tax marijuana as long as marijuana remains illegal under federal law.

The case arises from the state's attempt to collect sales taxes from a medical marijuana dispensary. But lawyer Douglas Hiatt, who filed it late Thursday, said it could throw a wrench in Washington's plans for collecting taxes on recreational marijuana, too.

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