The owner of the first marijuana dispensary in the United States in 1997 is broke and embroiled in a battle with the IRS. Cannabis activist Lynnette M. Shaw opened the first licensed medical marijuana dispensary with dreams of helping chronic pain sufferers garner organic medication is now struggling to pay the IRS $1.27 million in back income taxes and penalties, Forbes reports. The marijuana dispensary owner filed recently for personal bankruptcy, listing a $276,000 state sales tax bill among her debts.

Fiscal problems for Shaw’s cannabis center spawned from a decision by the IRS to deny business expense deductions for medical marijuana dispensaries. U.S Tax Code Section 280E notes tax deductions for businesses trafficking in controlled substances is prohibited by federal law. For unknown reasons, Shaw did not file to have her medical marijuana dispensary become a non-profit and opted to run the center a sole-proprietorship. Shaw’s recent tax returns note America’s oldest medical marijuana dispensary earned more than $1 million in annual sales.

Lynnette Shaw closed the medical marijuana dispensary in Fairax, California near the end of last year after U.S. Attorney for Northern California Melinda Haag threatened to seize the building. The letter about Shaw’s marijuana dispensary was part of a “coordinated crackdown” by four U.S. Attorneys in California to close cannabis businesses which violated state law by operating too close to park or school, Cannabis Culture reports.

Haag filed two lawsuits earlier this week in relation to the threatened seizure. California’s largest medical marijuana dispensary, the Harborside Health Center was also targeted in the cannabis crackdown. The Harborside Health Center was recently featured on the Discovery Chanel reality show, “Weed Wars.” According to statements from the marijuana dispensary published by Forbes, the facility will continue to operate and has received support from Oakland officials.

Currently 17 states and the District of Columbia has legalized or decriminalized some type of medical marijuana usage. More states are considering similar measures during the November election. Progressive Corporation founder Peter Lewis is a major backer of medical marijuana legalization legislation issues.

Shaw is often credited with playing a major role in California’s Proposition 215, the referendum which paved the way for medical marijuana dispensaries in the state, and possible throughout the nation. Lynnette M. Shaw also ran on the Libertarian Party ticket for Lieutenant Governor in 2006. Country music singer Willie Nelson endorsed her candidacy. Later comedic actor John Belushi chose Shaw to sing with the Blues Brothers shortly before his death in 1982.

Owner of America’s First Marijuana Dispensary Is Broke And Battling The IRS is a post from: The Inquisitr

Toking-up on medical marijuana may be legal in seven states after the November election. As of June 1, Ohio, Illinois, New York, Missouri, Pennsylvania, Massachusetts and New Hampshire included medical marijuana decriminalization amendments on the fall ballot or before the state assembly, according to the Pro-Con website. The regulated use of organic cannabis would allow patients the ability to opt for natural rather than synthetic medications created in a laboratory environment. A total of 16 states and the District of Columbia currently permit the regulated use of medical marijuana, the New York Times reports.

Although state laws will permit varying levels of sanctioned organic cannabis usage if the proposed measures pass, federal laws still consider any ingestion or possession of marijuana a criminal act.

Illinois – House Bill 0030 is a pilot program valid for only three years. A physician must diagnose a patient with a debilitating medial condition before allowing personal cultivation or purchase of medical marijuana from state regulated dispensaries.

Ohio – The Ohio Medical Cannabis Act of 2012 proposed amendment was a citizen-led initiative to alter the state constitution and pave the way for the decriminalization of medical marijuana. Ballot issue language calls for the creation of an Ohio Commission of Cannabis Control to function in a manner similar to the existing liquor control commission for regulations purposes. Physician approval would also be required to legally obtain or grow cannabis.

New York – Senate Bill 7283 would permit allow the manufacture, possession, use, delivery, administration and transportation of marijuana by a caregiver for medicinal use. The New York Department of Health would establish regulations for a medical marijuana registry and monitor the program.

Pennsylvania – Senate Bill 1003 would allow medical use of cannabis and repeal prior laws which penalize marijuana usage. The bill is also known as “The Governor Raymond Shafer Compassionate Use Medical Marijuana Act.

Missouri – House Bill 1421 would change existing state laws which classify marijuana as a controlled substance. The change in designation would allow medical marijuana usage under a specific set of conditions as described in the pending legislation.

New Hampshire – Senate Bill 409 would permit patients who meet the state mandated criteria to obtain registration cards for up to six ounces of cannabis or six marijuana seedling plants if the patient does not have a caregiver capable of visiting dispensaries.

Massachusetts – House Bill 625 would protect patients, physicians and caregivers from criminal charges if caught using, growing or possessing marijuana. Police officers would retain the right to “exercise judgment” concerning medical marijuana arrests under Massachusetts’ companion legislation, Senate Bill 818.

Medical Marijuana May Become Decriminalized in 7 States is a post from: The Inquisitr