August 2

On August 2nd, 1937, the Marihuana Tax Act was passed.

Taxing marijuana is not a new idea. In 1937, federal legislation did just that. The Act taxed cannabis and hemp sold commercially, at a rate of between $1-$24 per year, depending on how and why it was used. Vets paid a dollar, importers $24. It also imposed complicated regulations on handlers, subject to heavy fines. Very detailed records were to be kept, for example.

During WWII, farmers were encouraged to grow hemp as part of the war effort. Hemp would be largely replaced by nylon in later years.

The Act was repealed in 1970, since by then cannabis was a controlled substance and trying to pay taxes would only lead to jail time.