Denver Cannabis and Tax Attorney Jennifer Benda in Marijuana Business Daily
April 20, 2021
Marijuana Business Daily
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.