On April 13th, I moderated a webinar about cannabis taxes called “IRS Enforcement of Cannabis Operators is Here – What Do We Do Now?“. Cannabis taxes should scare anyone in the industry, but federal incomes taxes under I.R.C. 280E probably take the cake when it comes to general anxiety. Our webinar featured Ani Galyan and
As New York moves steadily closer to a fully rolled out adult-use cannabis industry, two New York state legislators recently proposed legislation that would significantly simplify the tax structure for adult-use cannabis. Under the Marijuana Regulation and Taxation Act (MRTA), New York would have charged a potency THC tax on all adult-use cannabis, plus an
President Joe Biden just dropped the federal budget for 2024. The White House boldly claims that the tax plan will reduce the deficit by $3 trillion over the next 10 years. But several parts of the budget’s tax reforms are likely to significantly (and adversely) impact the cannabis industry. Today, I’ll analyze a few key
Will we see tax reform in 2023 for cannabis sellers? Specifically, will Congress finally get something done about the pain inflicted on industry by the Internal Revenue Code at 26 USC § 280E? (“IRC 28oE”.) It feels like a long shot, but you never know. After many attempts to get the SAFE Banking Act through
For several years one of the biggest problems the cannabis industry has faced is I.R.C. Section 280E. It suffocates the regulated marijuana industry. A recent decision by the Oregon Tax Court addresses Section 280E and what may properly fall under Cost of Goods Sold (“COGS”) in the context of a marijuana grow operation. (See here, here, here, here and here
Last week, I wrote a piece entitled “Deschedule Cannabis, Don’t Reschedule It.” The post came on the heels of President Joe Biden’s announcement that the federal government is considering the federal scheduling of cannabis. As I noted, rescheduling cannabis to schedule II or below is a bad idea, because it would subject cannabis to DEA
Recently, numerous clients have come to us about issues with cannabis payment plans and the California Department of Tax and Fee Administration (“CDTFA“). Recall, there was a time in California (not that long ago) where certain cannabis companies threatened to just not pay their taxes because they believed the tax rate was too high. In
L.A. County commercial cannabis is finally coming in 2023. We covered the breaking news about L.A. County commercial cannabis regulations here. This is a huge deal, because L.A. County is the biggest county in the U.S. with over 9 million residents. L.A. County plans to allow the following businesses in in its borders in 2023:
California cannabis tax relief is a big deal. And a real thing. What’s important now is how the California Department of Tax and Fee Administration (“CDTFA”) interprets Assembly Bill 195. As I previously blogged, California is finally on board with a modicum of cannabis tax relief for cannabis licensees (mainly for the benefit of cultivators).
When it comes to cannabis ballot measures, a common promise is made to voters that the increased tax revenue from cannabis sales will go back into the community. Cannabis taxes are therefore unavoidable. So is the debate over how high those taxes should be. In turn, all states have their fair share of cannabis tax
