August 29, 2019
Karla J. Brannen, CPA, Albin, Randall & Bennett, Portland, Maine write, “For decades, cannabis, derivatives of cannabis, and related substances such as hemp and marijuana were classified as Schedule I narcotics under the 1970 Controlled Substances Act. Federally, the production and sale of marijuana have been and remain illegal, although a marijuana business remains obligated to pay federal income tax on its taxable income under Sec. 61(a).”
The most difficult regulatory aspect to deal with is the topic of taxation, primarily where non-First Nations people are buying cannabis products on-reserve without paying taxes back to the province. What has been learned from tobacco sales is that vendors on-reserve will not comply with provincial taxation rules and remit to the province. Provinces that intend to pursue the same approach with cannabis as they took with tobacco are not likely to get far into the conversation with First Nations.
Tax revenue from Nevada’s marijuana industry beat expectations and generated more than $31 million between July and October, with a majority coming from Clark County, according to the Nevada Department of Taxation. Reports Stock Daily Dish