Legislation to Reform Tax Laws for Cannabis Businesses Filed in U.S. House and Senate

U.S. Representative Earl Blumenauer (D-OR) and Senator Ron Wyden (D-OR) have introduced the Small Business Tax Equity Actphotocredithuffingtonpost of 2015 in both the House and the Senate. The bill would end unfair taxation issues faced by legal, state-sanctioned cannabis businesses by altering Section 280E of the federal tax code.

“The small businesses that make up the legal cannabis industry are working overtime to be responsible, contributing members of their communities,” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). “So it’s particularly outrageous that when they try to do the right thing by paying their federal taxes, they end up penalized with double and triple tax rates.”

Read moreLegislation to Reform Tax Laws for Cannabis Businesses Filed in U.S. House and Senate

Federal Bills to Amend IRS Code to Allow Tax Deductions by Cannabis Businesses Announced

Todaymoneycannabis, Representative Earl Blumenauer (D-OR-03) and Senator Ron Wyden (D-OR) announced plans to introduce bicameral legislation next week that would reconcile state cannabis laws and federal tax law. The Small Business Tax Equity Act, which was introduced last Congress by Congressman Blumenauer, would create an exception to Internal Revenue Code Section 280E to allow cannabis businesses operating in compliance with state law to take deductions associated with the sale of marijuana like any other legal business.

“More than two-thirds of Americans now live in jurisdictions that have legalized either the medical or adult use of marijuana. It’s time for the federal government to catch up,” said Congressman Blumenauer in a Thursday press release. “Section 280E creates an unequal and unrealistic tax burden on these businesses. I’m excited to work with Senator Wyden in introducing the Small Business Tax Equity Act, which would bring much needed fairness and level the playing field for small businesses that follow state laws and create jobs.”

Read moreFederal Bills to Amend IRS Code to Allow Tax Deductions by Cannabis Businesses Announced