Well, it’s a different world! The first time I ever smoked weed I was in my early 20’s, I’d say about 21. Prior to that I was raised on songs like Rob Base’s “It Takes Two” - “Don’t smoke Buddha, can’t stand Sess” or “Self Destruction” - “Your headed for self destruction!” So for most of my teen years I just knew that weed was wrong and illegal. My, how times have changed. As I grew up, weed became a bit more influential. Not only in my life, but pretty much across the world. Here in the states Colorado led the charge! Taxing the sale of marijuana, they were able to boost their states economy tenfold cha’ching! Fast forward and today there are some 32 states or more, in some way or another legalizing marijuana. Well… you know how New York is, now that New York is getting its head in the game, the powers that be will make their money, and at the same time get a little reward from good ol’ Uncle Sam! New York legislators are looking to allow marijuana companies to make deductions on their marijuana expenses. I bet this is going to move quickly! New York “Get the money first , ask questions later!” - Oz
Read it at: https://www.marijuanamoment.net/new-york-bill-would-allow-marijuana-industry-to-deduct-business-expenses-on-state-taxes/
A New York Senate bill introduced on Friday would allow licensed cannabis companies to deduct certain business expenses on their state tax returns, a move the bill’s sponsor says “will create a more equitable taxation system and allow more local, small businesses to participate in the cannabis market.”
The proposal represents not only a change to existing state law but also a break from federal tax policy, which through IRS Code Section 280E prohibits cannabis businesses from claiming deductions available to most other companies on their federal tax returns. Industry advocates have complained the federal and state rules treat cannabis businesses unfairly, impacting retailers and small businesses the hardest.
Because cannabis businesses can’t write off inventory or other operating expenses, 280E currently means that some cannabis businesses pay effective tax rates of up to 80 percent, according to industry groups and accounting firms.
The New York legislation, S.7518, would decouple the state tax code from the federal policy, amending state law to state that “the provisions of 280E…shall not apply for the purposes of this chapter to the carrying on of any trade or business that is commercial cannabis activity by a licensee.”
“This bill will provide tax equity to the emerging cannabis industry by allowing licensed cannabis businesses to make ordinary and necessary deductions on their New York state taxes,” says a memo from bill sponsor Sen. Jeremy Cooney (D). “Additionally, it ensures the adult-use cannabis market will not be dominated solely by large multi-state operators who can afford to pay the higher effective tax rate.”
In New York, the effective tax rate on cannabis businesses “would be approximately double what any other business has to pay,” the sponsor memo says. “If this goes unchanged, people will be unable or unwilling to leave the legacy market for a licensed business.”
“New York cannot realize the goals set in the MRTA for social and economic equity if the cost of doing business prevents the equity candidates from actually participating.”
Cooney wrote on Twitter that New York’s new cannabis legalization law “was crafted with a focus on equity at all stages,” adding that the state “must ensure that this focus includes licensing and taxation of these new businesses.”
— Marijuana Moment is already tracking more than 1,300 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.
Read further: https://www.marijuanamoment.net/new-york-bill-would-allow-marijuana-industry-to-deduct-business-expenses-on-state-taxes/