Eaze Insights: The High Cost of Illegal Cannabis

Skunk has higher levels of the psychoactive compound Δ9-tetrahydrocannabinol (THC) than “regular” pot, and has become much more prevalent in recent years, as people seek out more potent versions of the drug.

CALIFORNIA: New research identifies why illicit sales are thriving in the world’s largest cannabis market, and what that means for legal retailers Who: Peter Gigante, head of policy research at Eaze What: California is seven months into rolling out the world’s largest adult use cannabis market. Eaze’s head of policy research, Peter Gigante, will present new research that shows Read the full article…

Cannabis Market Brings In Significant Tax Revenues

20150513_103639

The cannabis market is experiencing significant growth due to the accelerating pace of cannabis legalization in the United States. According to a research report published by Technavio, the global legal cannabis market will grow at an impressive CAGR of around 37% between 2016 and 2020. The report indicated that rapid adoption of cannabis by individual consumers Read the full article…

Oregon House Bill 4014 Signed Into Law by Governor Kate Brown

House Bill 4014 Signed Into Law by Governor Kate Brown

by Larry J. Brant  As reported in my November 2015 blog post, in accordance with Internal Revenue Code (“Code”) Section 280E, taxpayers (for purposes of computing federal taxable income) are prohibited from deducting expenses related to the production, processing or sale of illegal drugs, including marijuana. A Bit of Welcome Relief? Measure 91, officially called the Control, Read the full article…

IRS 280E: A Real Bummer For The Marijuana Industry

The sale or distribution of marijuana is still a crime under federal law.  The impact of IRC § 280E is to limit the taxpayer’s business deductions to the cost of goods sold.

BY LARRY J. BRANT As a general rule, in accordance with IRC § 162(a), taxpayers are allowed to deduct, for federal income tax purposes, all of the ordinary and necessary expenses they paid or incurred during the taxable year in carrying on a trade or business.  There are, however, numerous exceptions to this general rule.  One exception Read the full article…

Revenue From Colorado Marijuana Tax Expected To Double In 2015

According to financial data released last week, the state also raked in significantly more money taxing marijuana than it did taxing alcohol for the yearlong period of July 2014 to June 2015, with marijuana netting almost $70 million and alcohol just under $42 million.

COLORADO: It’s heady times in the Mile High City, and that’s just at the state budget office. Colorado is on track to more than double the state’s marijuana tax revenues this year, showing up the $44 million collected in 2014 with a projected 2015 windfall of $125 million, reports The Guardian. The state hoped to collect $70 million in 2014, Read the full article…

Tom Yamachika: No Compassion In Overtaxing Medical Marijuana

Senate amendments to House medical marijuana legislation would tax the drug at a 25 percent rate.

HAWAII:  As you might be aware, in 2000 Hawaii enacted a medical use of marijuana law (Act 228, Session Laws of Hawaii 2000). The problem, of course, has been how to get this medical marijuana to those who need it without violating other laws. This year our Legislature is working on House Bill 321, which Read the full article…

Colorado Lawmaker Predicts ‘We Will See Cannabis Clubs Similar To Bars’

Q&A with Colorado state Rep. Jonathan Singer about marijuana issues, from regulating edibles and public consumption to criminal penalties and the potential impact of federal rescheduling.

COLORADO:  Rep. Jonathan Singer, D-Longmont, has been a leading voice on how Colorado’s medical and recreational marijuana industries are regulated, carrying most of the most important bills and providing testimony and experts on nearly all of them. Singer, 36, has represented House District 11 — which also includes northern Boulder County, most of Niwot, Allenspark Read the full article…

IRS Deal Will Refund Fines To Denver Pot Shop That Pays Taxes In Cash

The IRS has backed away from a policy that penalized an unbanked marijuana business in Denver for paying taxes in cash.

COLORADO: The Internal Revenue Service has backed away from a policy that penalized an unbanked marijuana business in Denver for paying taxes in cash, but the federal agency will not say if the approach applies industry-wide. In a settlement with Denver-based Allgreens, a medical-marijuana dispensary that challenged the agency over its policy, the IRS said Read the full article…

Tax Time Hits Hard For Marijuana Businesses

Cannabis businesses face a different issue at tax time that a marijuana tax expert refers to as the 280E problem.

COLORADO:  It’s tax time and small business owners all over America are digging out their receipts for deductions, except marijuana business owners because most deductions aren’t for them. Some of the top tax deductions for small businesses include advertising, office supplies, utilities, business entertaining and legal fees. But cannabis businesses face an different issue that Read the full article…

Despite Increasing Sales, Legal Pot Businesses Warn Of Impending Disaster If Changes Not Made

The legal marijuana industry is sending up red flags, warning a number of problems from high prices to a glut of pot threatening to derail the burgeoning recreational market.

WASHINGTON:  The amount of legal pot sold in our state continues to increase each month since Washington’s first retail stores opened last summer. The Washington State Liquor Control Board reports sales of nearly $18.5 million in January alone. But the industry is sending up red flags, warning a number of problems from high prices to a glut Read the full article…