An Examination of the Legalization of Marijuana: The Legal System, Potential Costs to Employers, and Taxes

• In Event: Issues in Accounting II

Abstract

In this paper we examine the implications the changing legal environment relating to marijuana. We specifically examine the legal system, potential costs to employers, and tax related issues. First, state and federal laws relating to marijuana are examined and discussed. Next we discuss potential (hidden) costs to employers, such as increased difficulties of maintaining drug-free workplaces, increased costs of on the job accidents, and potential lost productivity. Lastly, we discuss the tax implications for the marijuana industry.

Authors

• Lee Kersting, Northern Kentucky University

• Teressa Elliott, Northern Kentucky University

• Bob Salyer, Northern Kentucky University