According to a 20 April report at MJ Biz…
Marijuana businesses have paid higher taxes than mainstream companies for years thanks to Section 280E of the Internal Revenue Code, and now cannabis operators – especially retailers – might face an even bigger tax bill from Uncle Sam as well as some states.
Two noteworthy developments could boost marijuana firm taxes:
- President Joe Biden’s $2 billion infrastructure plan proposes raising the federal corporate tax rate from 21% to 28%.
- States legalizing recreational marijuana programs increasingly are limiting vertical integration to small operators, or microbusinesses. By contrast, stand-alone marijuana retailers face a higher federal tax burden than vertical operations given the limited number of deductions retailers can take, tax experts say.
The prospect of such a one-two punch has raised alarm bells among cannabis tax experts….