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.