The US Cannabis Industry is Booming If You Don’t Count the $3,800,000,000 Owed in Back Taxes and IOUs

April 8, 2024 ·

The cannabis industry is great at not paying their bills. If you remember the video that went viral for the dispensary owner saying the key to making money is not paying your vendors, and just let them go out of business. In Canada, the Canadian government is cancelling 123 cannabis licenses over upaid taxes, and what they view as "uncollectible" debt. In California, the state has created a "cannabis company deadbeat" list of entities that owe licensing and tax money to the state… Read more.

Nebraska Bill Aims To Increase Taxes on CBD, Hemp Products by 100%

March 27, 2024 · High Times

A recent property tax relief bill in Nebraska is seeking to create new income opportunities for the state, including a variety of sales tax exemptions. This includes adding sales taxes for products like candy and soda, as well as services such as pet care and grooming, but most importantly, adding a 100% tax to CBD and hemp products. Legislative Bill 388 was recently passed by the Nebraska Legislature’s Revenue Committee on March 21 in a seven to 10 vote. The bill was initially… Read more.

Are Cash Transactions over $10,000 in the Weed Industry a Problem with the IRS? – Tax Agency Says No, Just Fill Out Form 8300

March 25, 2024 ·

The IRS has released a new memorandum to clarify reporting regulations concerning substantial cash transactions within the marijuana industry. According to the agency, such transactions should not automatically trigger suspicion solely due to the industry's federally prohibited status. The memo addresses inquiries regarding Form 8300, a mandatory document for cannabis businesses receiving cash payments exceeding $10,000. Charles Hall, special counsel at the IRS, stated, "The memorandum offers insights into various concerns through a question-and-answer format." He added that the IRS… Read more.

Tax reforms, pharmacy sales among Canada’s cannabis law review recommendations

March 25, 2024 · MJ Biz Daily

A government-appointed panel of experts analyzing Canada’s adult-use legalization law, the Cannabis Act, has recommended the country enable pharmacy access for medical marijuana and reconsider how excise tax is applied to recreational products. The proposals are part of a final report, 18 months in the making, that lays out 54 recommendations and a number of observations for the federal government to consider. Some of the recommendations align with industry expectations, such as allowing pharmacies to sell medical cannabis products, which… Read more.

Marijuana Industry Cash Is Not Necessarily ‘Suspicious,’ IRS Says In New Guidance Memo

March 19, 2024 · Marijuana Moment

The Internal Revenue Service (IRS) has issued a new memo clarifying the rules for reporting large cash payments between marijuana businesses, which the agency says should not automatically be considered “suspicious” just because of the federally prohibited nature of the industry. In the memo, IRS says it is responding to a request for guidance on how cannabis businesses should approach Form 8300, a document that must be completed when a company receives a cash payment of $10,000 or more. “The… Read more.

Sick of Sending Tax Dollars Out-Of-State, Pennsylvania Governor Urges Legislature to Legalize Recreational Marijuana

March 14, 2024 ·

Josh Shapiro, the governor of Pennsylvania, pushed state lawmakers this week to legalize and regulate marijuana for recreational use. He emphasized the need to follow the lead of nearby states that have already made this decision. In his yearly budget speech, which included a $48.3 billion spending plan, the governor urged legislators to band together and enact legislation legalizing marijuana, on the condition that the sector be subject to prudent regulation and taxes. Although there is no explicit provision for… Read more.

Cannabis wholesalers must garnish payments over unpaid taxes, Canada says

February 27, 2024 · MJ Biz Daily

Canada’s tax collection agency is following through on a threat to garnish cash from licensed cannabis producers that are delinquent on their excise duty payments, MJBizDaily has learned. The move is a major escalation in the Canada Revenue Agency’s efforts to collect money it’s owed by federally regulated cannabis companies with outstanding excise debt – a situation that has ballooned in recent years as the industry’s financial challenges mount. The amount of unpaid federal excise tax owed by Canada’s cash-strapped marijuana companies… Read more.

California Cops, Tax Collectors Auction Off Property Seized in Cannabis Raids

February 19, 2024 · High Times

Glass bongs, money counters, a La-Z-Boy recliner and a snow cone machine were among the goods auctioned off Friday at an auction hosted by the CHP and CDTFA to raise money for unpaid taxes on cannabis businesses. The California Department of Taxes and Fee Administration released a notice last week about the auction, held Friday, February 16 in Los Angeles. The notice said that the property to be sold had been seized from 10 cannabis businesses in the Los Angeles area, nine… Read more.

Long Beach, California To Slash Pot Taxes in Half for Stores in Good Standing

January 29, 2024 · High Times

Long Beach, California is on track to establish an ordinance that will give cannabis retailers a minor tax break and reward the ones in good standing on their payments with a bigger tax break, cutting their local tax in half. At a Jan. 23 meeting, Long Beach City Council members voted to request an ordinance be drafted to lower rates for businesses that meet hiring and compensation markers and are up to date with their current tax payments. City leadership has… Read more.

Washington GOP Senator Wants More Marijuana Revenue Sent To Local Governments As Alternative To Property Tax Increases

January 28, 2024 · Marijuana Moment

Problem: Local governments in Washington state say they need more money to address affordable housing, public safety and other inflationary costs. Solution? Give cities and counties a bigger share of the state’s liquor and cannabis tax revenues. That’s the proposal of state Sen. Keith Wagoner (R-Sedro-Woolley) who has introduced two bipartisan bills as a counter-measure to calls by some Democrats to triple annual property tax increases to 3 percent from the current 1 percent limit. “I’ve seen a lot of… Read more.

How Much Tax Revenue Would Be Created by Legalizing Marijuana? A. $20 Billion B. $8.5 Billion C. $3 Billion

December 27, 2023 ·

A recent report from a nonprofit think tank based in Washington, D.C., the Tax Foundation, suggests that nationwide legalization of marijuana across all states could lead to an annual cannabis tax revenue of $8.5 billion. The report outlines a proposed state and federal taxation model aimed at maintaining relatively low costs to discourage illicit sales, while also imposing higher tax rates on more potent cannabis products. The Tax Foundation criticizes the current inconsistent state-level cannabis taxation, primarily based on sales prices,… Read more.

Arizona Awards ‘Justice Reinvestment’ Grants To 18 Community Nonprofits, Paid For With Marijuana Revenue

December 27, 2023 ·

Arizona has awarded the first round of Justice Reinvestment Grants to 18 community nonprofits, state officials announced last week. The program, created by the state’s 2020 marijuana law, is funded by revenue from taxes on legal cannabis sales. The grants program supports a variety goals of including public and behavioral health, such as substance use prevention and treatment; workforce development and mentorship programs in economically disadvantaged areas; “addressing the underlying causes of crime” and reducing the state prison population; and developing… Read more.

Maryland Collects More Than $12 Million In Legal Marijuana Taxes During First Quarter Of Legal Sales

December 21, 2023 ·

Maryland brought in more than $12 million in marijuana tax revenue during the first three months of legal cannabis sales to adults, which kicked off on July 1. The figures, released this week by the state comptroller’s office, detail revenues from the third quarter of the fiscal year, which spanned from July through September. Sales of recreational marijuana during that period totaled about $158.5 million, according to the Maryland Cannabis Administration (MCA). More than a third of the tax revenue—35 percent, or about… Read more.

Federal Cannabis Legalization Could Generate $8.5 Billion in Tax Revenue

December 18, 2023 · Ganjapreneur

The Tax Foundation, a D.C.-based think tank, has proposed a state and federal marijuana tax model in a recent report, suggesting that nationwide legalization could generate $8.5 billion in annual cannabis tax revenue. First reported on by Marijuana Moment, the foundation’s model aims to keep costs low to counter illicit sales and suggests higher rates for more potent products. The current state-by-state approach, mostly taxing by sales price, is described as chaotic, and the foundation emphasizes the importance of a well-designed excise… Read more.

Arkansas Medical Cannabis Sales Tax Funds School Lunches for Kids

December 14, 2023 · High Times

The Arkansas Medical Marijuana Commission (AMMC) recently announced the benefits that the state’s medical cannabis program, with millions of dollars in cannabis tax funds helping to provide lunches for kids at school. While the state has collected $115 million from cannabis taxes, $87 million went toward free or low-cost lunches for children. AMMC spokesperson Scott Hardin explained the breakdown. “A billion dollars has been spent to purchase medical marijuana but what that means for the state is that we’ve collected… Read more.

Ohio Senate Redirects Cannabis Tax Revenue to Law Enforcement

December 12, 2023 · Ganjapreneur

The Ohio Senate passed a bill last week to change the state’s adult-use cannabis law, WTAP reports. The measure, passed on the day the voter-approved law took effect, would raise the excise tax on cannabis products from 10% to 15% and change how those tax dollars are spent.   Under the proposal, more than half of adult-use tax revenues would be earmarked for law enforcement and jail construction, while the other half would be used for drug treatment and related programs.  The voter-approved measure had created… Read more.

Rescheduling marijuana would liberate plant-touching firms from Section 280E

December 5, 2023 · mj-biz-daily

As the co-founder and CEO of Capitol Wellness Solutions in Baton Rouge, Louisiana, Randy Mire runs one of only 10 companies awarded a license to sell medical marijuana in the southern state. A change in state law that went into effect last year means the number of dispensaries – or pharmacies, as Louisiana’s brick-and-mortar marijuana retail locations are called – allowed in the state might triple. As for the ability to pay less in taxes to the federal government and… Read more.

What the end of 280E might mean for cannabis business taxes

October 17, 2023 · MJ Biz Daily

As the U.S. Drug Enforcement Administration weighs whether to revise marijuana to a Schedule 3 controlled substance, regulated cannabis producers are looking forward to the prospect of easing their heavy tax burdens under Section 280E of the federal tax code. Moving marijuana to Schedule 3 from Schedule 1 would end 280E’s effect on the cannabis industry, allowing state-regulated companies to “deduct, for federal income tax purposes, all their ordinary and necessary business expenses, the same as any other company would do,” said… Read more.