Canada’s cannabis industry prays for tax reform in federal budget
Canada’s Liberal government unveils its 2024 budget on Tuesday, and the country’s cannabis industry wants one thing above all: relief from a heavy excise-tax burden.
Canada’s Liberal government unveils its 2024 budget on Tuesday, and the country’s cannabis industry wants one thing above all: relief from a heavy excise-tax burden.
If and when rescheduling becomes law, regulated marijuana business owners in the United States would enjoy an enormous tax cut, as the notorious IRS Section 280E would no longer apply.
An increasing number of county and local elected officials across California are acknowledging a longtime cannabis industry grievance – legal companies’ taxes are too high – and cutting local levies on retail sales, business operations or both.
Social equity founders still face an uphill battle in the cannabis industry, despite policies specifically designed to level the playing field for minorities and those affected by the war on drugs.
Connecticut is repealing a program that provided a tax credit to marijuana industry angel investors while changing its tax rules to permit cannabis business expense deductions from state taxes.
Marijuana companies paid more than $1.8 billion in federal taxes in 2022 compared to non-cannabis businesses as a result of U.S. tax treatment of the MJ sector, according to an analysis by industry research firm Whitney Economics.
Alaska’s recreational marijuana taxes are the highest in the country, and New Jersey’s are the lowest.
That’s according to Richard Auxier and Nikhita Airi, the authors of the Urban-Brookings Tax Policy Center’s September report, “The Pros and Cons of Cannabis Taxes.”
The Mississippi government has collected millions of dollars in revenue from medical marijuana businesses, even though MMJ sales have not yet begun.
StateHouse Holdings, formerly known as Harborside, agreed to a payment plan with the IRS to settle a $22 million federal tax bill.
California’s business tax collector is ramping up enforcement against unlicensed and licensed cannabis companies, which owe the state nearly $200 million in unpaid taxes.
A Colorado proposal to use $5 million in marijuana tax collections to help buy machines to process hemp fibers failed.
Marijuana industry tax experts are warning clients of a new wave of audits targeting cannabis companies and their 2019 returns, which could result in additional tax bills for businesses.