Forcing state-licensed cannabis businesses to continue paying punitive taxes on their ordinary business expenses, even should cannabis be federally rescheduled, is now a bicameral effort in the U.S. Congress. Congressman Jodey Arrington, R-Texas, who chairs the House Budget Committee, and six of his fellow representatives in the U.S. House introduced legislation, H.R. 1447, on … [Read more...] about 7 US House Republicans File Bill to Prevent 280E Tax Relief for Cannabis Businesses
280E
Not Cool, Man: Senate Proposal to Expand 280E Taxes on Cannabis Businesses Even if Rescheduled
Anyone who thought that the momentum towards federal liberalization of marijuana would be a straight line found themselves with a cold dash of water to the face. Late last week Republican senators filed a bill, entitled the “No Deductions for Marijuana Businesses Act,” which would preserve a punitive federal tax policy that bars cannabis companies from taking ordinary business … [Read more...] about Not Cool, Man: Senate Proposal to Expand 280E Taxes on Cannabis Businesses Even if Rescheduled
2 US Senators Work With Prohibitionists to Stop 280E Relief Under Cannabis Rescheduling
A pair of Republican U.S. senators introduced a bill on Feb. 7 that intends to prevent licensed cannabis businesses from deducting ordinary business expenses from their taxes even if the plant gets rescheduled. Under Section 280E of the Internal Revenue Code, cannabis businesses are unable to deduct these expenses—such as payroll, rent and utilities—from their taxable income … [Read more...] about 2 US Senators Work With Prohibitionists to Stop 280E Relief Under Cannabis Rescheduling
The Edge of Disruption: U.S. Patents and Tax Codes—The Perfect Storm
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
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?
