marijuana companies Paid more than 1.8 billion dollars in federal taxes in 2022 compared to non-cannabis-related businesses as a result of the US tax treatment of the MJ sector, according to an analysis by industry research firm Whitney Economics.
“This surplus is expected to grow to $2.1 billion in 2023,” the Portland, Oregon-based Whitney noted in a press release.
advertisement
Overpayments are the result Section 280E of the federal Internal Revenue Code, an old thorn in aspects of the US marijuana business that are legal under state law.
Section 280E prohibits companies deemed to be trafficked for trafficking in Schedule 1 and Schedule 2 controlled substances from deducting business expenses in the same manner as other companies.
That effectively results in a “federal income tax liability calculated on gross income, not net income,” Whitney explained.
Between 2020 and 2030, US marijuana industry taxes will be worth approximately $65.3 billion including
Read the full article at Marijuana Business Daily
