The New York cannabis market is already worth around $4.6 billion, MPG added. According to industry adviser MPG Consulting, two-thirds of marijuana purchases still happen with black market drug dealers, who easily outcompete higher-cost licensed players. High taxes alone can cripple the legal market. The initial tax revenue projections might certainly be generous enough to get conservative politicians and voters behind a legalization push, but is there longevity in the industry? It’s tempting for newly legal states to hike up cannabis taxes, especially as these local governments look for ways to prop up their long-term finances after the pandemic.
Without the ability to deduct these items, cannabis businesses are repeatedly at a financial disadvantage compared to non-cannabis businesses. Since cannabis is still classified as a Schedule 1 substance at the Federal level due to the Controlled Substance Act, state-licensed and legal cannabis businesses cannot claim typical business deductions like payroll, marketing expenses, or rent.
BLACK MARKET 280 CODE
The IRC 280e is a piece of tax code that forbids any business connected with Schedule 1 and Schedule 2 drugs from deducting business expenses. What is IRC 280e and how does it impact the cannabis market? While marijuana proponents across the United States are singing the praises of tax surpluses and their ability to directly benefit from a multitude of state-based initiatives (specifically state public school funds), there remains several federal laws and tax codes spurring chatter amongst cannabis companies – most notably the IRC 280e. Based on the latest information from the Marijuana Policy Project, there are 18 states that have now legalized recreational cannabis, with a total of 36 states allowing citizens to use the drug for medicinal purposes. New Mexico, New Jersey, and Virginia have all signed and approved adult-use marijuana laws this year alone. New York is one of several states that have recently gone legal. It seems like every single year in the United States, another state moves closer to passing a piece of legislation that supports further legalization of cannabis.
0 kommentar(er)
