The marijuana industry, once a budding frontier of promise and innovation, faces an uncertain future shadowed by the foreboding elements of U.S. Pat. No. 5284867 and tax code 280E. These seemingly disparate components, when considered together, hold the potential to dismantle the industry's progress and reshape its trajectory in unforeseen ways.Let's begin with the patent, … [Read more...] about The Edge of Disruption: U.S. Patents and Tax Codes—The Perfect Storm
280E
Blunts: Congress’ Research Says Keep Weed Taxes Low
Earlier this month, the Congressional Research Service (CRS) released a report that recommended low federal cannabis taxes to avoid unfair pressure on the industry. According to the report, cannabis advocates who claim that legalizing the drug would provide a new tax revenue source for the government may not be considering the potential economic impact of overburdensome taxes … [Read more...] about Blunts: Congress’ Research Says Keep Weed Taxes Low
280E: How the Cannabis Industry Got Here
Cannabis is a plant that has been used medicinally and recreationally for thousands of years. During the past decade, through both education and state legalization, the cannabis stigma has waned in the United States. More than 40 states and four U.S. territories have legalized medical or adult-use cannabis consumption. As a result, Brightfield Group estimates that U.S. cannabis … [Read more...] about 280E: How the Cannabis Industry Got Here
Marijuana MSO Trulieve seeks $143M federal refund for 280E taxes
Multistate marijuana company Trulieve Cannabis Corp. is seeking a federal tax refund of $143 million, saying it “believes it does not owe” the taxes it paid over three years. “This determination is supported by legal interpretations that challenge the company’s tax liability under Section 280E of the Internal Revenue Code,” Florida-headquartered Trulieve said in a Friday news … [Read more...] about Marijuana MSO Trulieve seeks $143M federal refund for 280E taxes
Opinion: Cannabis businesses could recoup millions on exit, thanks to ‘280E asset’
A combination of tax methods could help cannabis companies reduce their tax burden under Section 280E of the federal tax code. If recent case law is applied equitably, the cannabis industry could be sitting on millions of dollars in unclaimed federal tax refunds. The first, a method I call “the 280E asset,” is supported by very old case law and a recent federal claims court … [Read more...] about Opinion: Cannabis businesses could recoup millions on exit, thanks to ‘280E asset’
Is Tax Relief on the Horizon for Marijuana Businesses?
Businesses that sell marijuana have a heavy federal income tax burden. They are taxed on their income but can’t write off most of their business expenses. Section 280E of the federal tax code bars marijuana firms from claiming business expenses on their federal tax return other than for their cost of goods sold. It doesn’t matter that the use and sale of marijuana are legal … [Read more...] about Is Tax Relief on the Horizon for Marijuana Businesses?
Could eliminating 280e lower pot prices?
Section 280E of the Internal Revenue Code disallows deductions or credits for any expenses related to the sale of illegal drugs, including marijuana, which is still considered a controlled substance under federal law.Presently, this federal tax regulation still applies to marijuana firms operating legally in the United States under state law. As a result, they are not permitted … [Read more...] about Could eliminating 280e lower pot prices?
After pandemic high, San Francisco marijuana sales lethargic in 2022
KPVI Cannabis retailers in San Francisco have seen better days. After a steady rise through the early stages of the COVID-19 pandemic, cannabis sales in San Francisco have plunged thus far in 2022, according to data reported by retailers to state regulators. Cannabis retailers in San Francisco saw $72.4 million in sales in the second quarter of 2021. In the same quarter this … [Read more...] about After pandemic high, San Francisco marijuana sales lethargic in 2022
No Pennies-on-Dollar Tax Settlements for the Cannabis Industry
Bloomberg Section 280 takes the profit out of the cannabis business by disallowing “deductions” and creating huge income tax liabilities. But if 280E tax debt isn’t also forgiven, the current cannabis industry won’t survive against newcomers, says Greenspoon Marder’s Nicholas J. Richards. Recent downturns in cannabis sales and loss of capital investments have revealed the … [Read more...] about No Pennies-on-Dollar Tax Settlements for the Cannabis Industry
Did anyone notice this elephant in the room? 280E
280E? Is that a Mercedes-Benz? No. Well yes it is, but that’s not what we’re talking about here. Most people would say something like “You’re in the medical/recreational marijuana business? You must be loaded!” Major misconception. Especially when considering that 280E stands in the way of dispensary/production business models. This is something that needs to be talked … [Read more...] about Did anyone notice this elephant in the room? 280E
