MEDIA ALERT - Taxation and the Cannabis Industry
What: Many states have legalized marijuana for medicinal purposes, and a growing number of states have now legalized marijuana for recreational use.
- What: Many states have legalized marijuana for medicinal purposes, and a growing number of states have now legalized marijuana for recreational use.
- Additional expansion is possible in the November elections with ballot initiatives in three states.
- For tax purposes, this prevents cannabis businesses from deducting many of their business expenses while the income received is taxable, resulting in a much higher effective tax rate than that imposed on other businesses.
- Several cannabis businesses have challenged this treatment in court but have generally lost those challenges.