Doing business in Missouri could become less expensive for the state’s medical cannabis industry – provided the governor gives his stamp of approval.
During their recently concluded legislation session, Missouri lawmakers passed a bill with “near unanimous approval” that would ease the state tax burden for medical marijuana businesses, according to St. Louis Public Radio.
But it’s unclear if Gov. Mike Parson will sign the bill into law or veto it.
If signed, the bill would allow medical marijuana companies to deduct “ordinary and necessary” business expenses on their state tax returns that Section 280E of the federal tax code currently prohibits.
The federal tax provision bars marijuana businesses from claiming tax deductions afforded to most other companies.
By making this change, state lawmakers “put medical cannabis businesses on a level playing field with all other small businesses across the state when it comes to taxes,” Andrew Mullins, executive director of the Missouri Medical Cannabis Trade Association told St. Louis Public Radio.