US House bill would would grant cannabis companies federal tax relief
MJ Biz Daily reports that legal cannabis businesses would enjoy federal tax relief under a bill introduced on Monday in the U.S. House of Representatives.
According to the publication, the Small Business Tax Equity Act would make cannabis businesses obeying state law exempt from Section 280e of the Internal Revenue Code which currently prohibits sellers of Schedule 1 controlled substances from making certain typical business deductions on their federal tax returns.
This situation means cannabis businesses often see up to 90% tax rates, incentivizing the tax-free illicit market.
“If Congress wants to get serious about supporting small businesses and ending the illicit cannabis market, it is common sense that we allow legal cannabis operations to deduct business expenses, just like any other industry,” stated Rep. Earl Blumenauer..
New York City sues unlicensed cannabis dispensaries and landlords
Lexology has provided a case update on The City of New York v. The Land and Building Known as 14 First Avenue, et al.
In the Land Building Action, the City alleges that undercover, underage police officers bought cannabis at each of the shops on three occasions in December and those premises did not have a CAURD license to sell cannabis.
The legal publication sets out that, in each filing, the City demands financial penalties from both the landlords and store owners, and is seeking to permanently stop the subject premises from being utilized to sell cannabis – relying on the same public nuisance laws that usually are used when landlord refuse or fail to evict tenants that operate brothels and drug dens.
Now the case is adjourned, the Court will continue to enforce the injunction and prevent the Premises from being used in any way other than to conduct repairs or inspect the Premises.
Colorado House approves bill to allow online marijuana sales to reduce cash at dispensaries
Marijuana Moment reports that adults will now be able to buy cannabis online in Colorado. Supporters say this move will help businesses that have depended largely on cash transactions that put them at risk of crime.
Under the bill:
- Certain language would be struck from the existing statute that prohibits cannabis from being sold on the internet
- Regulations to provide for online commerce would be included.
- Adults 21 and older would still need to physically pick up the cannabis products from the retailer.
- Retailers would be required to verify the name and age of the customer at the time of the online purchase.
- The retailer would have to provide shoppers with “digital versions of all warning or educational materials that the retail marijuana store is required to post and provide on its licensed premises.”
- The customer would have to “acknowledge receipt” of those materials before finishing their purchase.
Reps. Said Sharbini (D) told the publication: “At this point, there are banks that are opening up to function with them. Regulations are opening up across the country, and we need to be competitive as well. This is a step in that direction, and trying to make sure that we can facilitate better business.”
