MARIJUANA TAXATION: NAVIGATING THE HIDDEN TAX OF IRC SECTION 280E
By Jonathan S. Berck, Esq.
Legal adult-use cannabis is taxed at multiple levels. New York, for example, imposes taxes on the THC content of cannabis products ranging from $.005/mg of THC for flower to $.03/mg of THC for edibles, and 13% state and local sales taxes. But a hidden tax lurks for cannabis entrepreneurs: the effect of IRC Section 280E, which restricts the deductions and credits available to cannabis businesses and poses a major economic disincentive. This article discusses strategies for mitigating the effects of Section 280E. For the full article, click on the link below.
Taxation of cannabis-related businesses can be tricky due to the federal disallowance of most business deductions. But there are workarounds.
Banking is one of the largest problems facing cannabis-related businesses and banks alike.
Recent guidance from the New York State Department of Labor summarizes what employers can and can’t do in the workplace regarding employees’ cannabis use under the Marihuana Regulation and Taxation Act.