Taxation

Marijuana businesses must comply with federal and state laws regarding income reporting and taxation, nonuniform state and local laws regarding sales taxes, and nonuniform local laws regarding registering and payment of business license taxes or other local fees.

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Members Of Congress Seek To Help Cannabis Businesses With Tax Reforms

By Debra Borchardt

The Small Business Tax Equity Act of 2017 was introduced both in the House and in the Senate today. The bill would allow cannabis businesses operating legally under state law to take normal business deductions like other legal businesses. Currently, IRC 280E prohibits cannabis businesses from deducting expenses related to sales.

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Possible Landmark Marijuana Tax Trial Starts Monday

By John Schroyer

All plant-touching legal marijuana businesses in the United States are hit by Section 280E of the Internal Revenue Code, which bars them from taking standard business income tax deductions available to other law-abiding industries. In early June, another trial will begin in the U.S. Tax Court challenging Section 280E, this time on behalf of Oakland’s Harborside, one of the nation’s largest dispensaries.

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