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Marijuana Law Updates / Marijuana Law Analysis
December 4, 2017 no comments

Section 280E Amendment May Not Make GOP Tax Bill

Last week, the buzz throughout the marijuana community was the potential for Section 280E – an Internal Revenue Code provision that prohibits tax deductions for businesses trafficking in controlled substances – to be amended within the new GOP Tax Bill.  Originally meant to prevent drug cartels from deducting expenses related to their illegal drug dealings, the impact of Section 280E has more recently been felt by legitimate marijuana businesses operating legally under state laws and who are unable to write off any tax exemptions related to their business operations.

Senator Cory Gardner of Colorado was to sponsor the Section 280E amendments, which would exempt businesses consisting of marijuana sales conducted in compliance with state law.  However, because the Section 280E amendment would add to the country’s deficit, Senator Gardner did not believe he would be able to acquire enough votes to include it within the GOP Tax Bill.  Therefore, the current version of the GOP Tax Bill that does not include a Section 280E amendment and it seems unlikely to be added now that the bill is undergoing bipartisan review.

Fortunately, there are two standalone bills still pending that could amend Section 280E to benefit marijuana businesses.  H.R. 1810 (“Small Business Tax Equity Act of 2017”) was introduced in the House on March 30, 2017 and was referred to the House Committee on Ways and Means.  H.R. 1810 currently has forty cosponsors and counting.  An identical bill, S.777 was also introduced into the Senate and sent to the Committee on Finance, but it has only six cosponsors.

With 29 states allowing legal medical marijuana and eight states plus Washington D.C. allowing legal recreational marijuana, it is becoming increasingly apparent that Section 280E may need to be amended so that marijuana businesses can be allowed to claim tax deductions comparable to other businesses in this country.

Qualifying Michigan Medical Marijuana Conditions

The Michigan Department of Licensing and Regulatory Affairs (LARA)  recently added eleven more Michigan medical marihuana covered conditions.  Those are as follows: Arthritis Autism Chronic pain Colitis Inflammatory Bowel Disease Obsessive-compulsive [...]

Michigan Legislature Defers to Voter Referendum on Recreational Use of Marijuana

The deadline has come and gone for the Michigan legislature to pass the November 7, 2018 ballot initiative that would pave the way for legal recreational marijuana use in Michigan. [...]

Michigan Recreational Marijuana Approved for Ballot

On April 26, 2018, the Michigan Board of State Canvassers ruled in a 4-0 decision that the Coalition to Regulate Marijuana Like Alcohol ("CRMLA") had enough valid signatures for recreational marijuana [...]

Poll Favors Recreational Use in Michigan

A new poll conducted by the Detroit News and WDIV Channel 4 in Detroit show that 57% of likely voters approve the ballot proposal for recreational use of marijuana in [...]

NEW Michigan Medical Marihuana Emergency Administrative Rules Issued Dec. 4, 2017

On December 4, 2017 Michigan's Department of Licensing and Regulatory Affairs ("LARA") issued Emergency Rules for the Medical Marihuana Facilities Licensing Act.  The Emergency Rules are to remain in effect [...]

Signatures Are Being Submitted to Legalize Recreational Marijuana in Michigan

After narrowly missing the 2016 ballot due to signatures being voided as more than 180 days old, the Michigan group behind the recreational marijuana legalization movement, The Coalition to Regulate [...]