The City of Sequim delayed the presence of retail recreational marijuana via moratoriums for a year, but after the final ban expired last August, two store owners are on the cusp of opening within the city limits.

Anthony Owen, owner of Karma Cannabis, 131 River Road, underwent and passed the final inspection from the Washington State Liquor and Cannabis Board (WSLCB) on Friday, Feb. 5.

Approval from the WSLCB should issue Owen his pending state marijuana retail license and allow him to receive a business license from the City of Sequim needed to open.

“We’re about 90 percent through the buildout,” Owen said in early February.

Karma Cannabis set to open mid-month will be the sister company to Owen’s established recreational marijuana store The Hidden Bush in Port Angeles.

In the midst of installing large handblown glass light fixtures and a tile floor, David Halpern, owner of Nature’s Gifts, 775 W. Washington St., Suite C, also is preparing for business.

As for the store’s nearly complete interior, both Halpern and manager Matthew Clark wanted the atmosphere to be “warm, comfortable and professional,” Clark said.

“We went to a lot of stores and none of them had a very uniform theme,” he said.

“We want people to feel like they can come in and relax, look around, get information and not have to rush in and out,” Halpern said.

Once the security system is up and running, Halpern and Clark expect to have their final state inspection and aim to open in two to three weeks.

Although they can’t begin purchasing inventory, such as flowers, concentrates, oils, topicals, edibles and infused beverages, until all licensing is complete, in hopes of sourcing most of their products locally, Halpern and Clark already have met with nearby producers and processors.

“We would like there to be a local emphasis,” Clark said.

In May 2014, Halpern was awarded the opportunity to be the sole recreational marijuana retailer in Sequim through the state-conducted lottery system first used to limit the number of storefronts within counties and cities. Since then however, with the mandated integration of medical marijuana with recreational starting in July, state officials have opted to accept additional applicants.

This change allowed other recreational retailers, besides Halpern, like Owen to pursue setting up shop in Sequim, too.

Once Karma Cannabis and Nature’s Gifts are open for business, Sequim will become eligible for a portion of the excise tax shared with cities and counties where licensed marijuana retailers are physically located. Different from the original tax structure set when recreational marijuana first hit the market, the taxation is a single excise tax of 37 percent at the time of retail sale.

For fiscal years 2016 and 2017, a total of $6 million will be distributed. By 2018, the amount shared among cities and counties will increase based on a distribution formula.

According to the Fiscal Year 2016 (July 1, 2015-June 30, 2016) “Distributions to Local Governments for Marijuana Enforcement” from the WSLCB, of the $6 million distributed Port Angeles received $18,710 and Clallam County got $28,065.

Once the largely unregulated medical dispensaries no longer will be allowed beginning in July and the medical industry must merge with recreational, it too will come under WSLCB regulations and the excise tax.

The excise tax, however, doesn’t include local sales tax. In an attempt to make medical marijuana still an affordable option for medicinal users, medical marijuana is exempt from the retail sales tax to qualifying patients and their designated providers.

Upon opening, Nature’s Gifts and Karma Cannabis will sell recreational marijuana, but come July, both Halpern and Owen plan to apply for their medical marijuana endorsement from the WSLCB so to provide medical marijuana to qualifying patients or designated providers who have been issued recognition cards.

It’s unknown how well medical marijuana patients will transition to purchasing from retail outlets where some, but not all taxes are exempt, Halpern said.

Across the state in January, the sale of more than 9,000 pounds of recreational marijuana totaled more than $77.55 million, according to Liquor and Cannabis Board.

As of Jan. 19, retail purchases totaled more than $420 million since the first sales in July 2014, according to Aaron Hanson, Liquor and Cannabis Board budget analyst.

Retail sales in Clallam County account for more than $3.68 million of the grand total.

Reach Alana Linderoth at alinderoth@sequimgazette.com.