Taxes

King County, Washington is considering shifting its cannabis-derived funds from the Sheriff’s Office to instead pay for community programs and to help individuals vacate cannabis-related convictions.

A new IRS guidance says state-legal cannabis firms should be able to take business tax deductions under Section 471, a tax code approved in 2018 that allows businesses grossing $25 million or less in revenue to deduct a greater portion of their expenses.

Cannabis taxes have helped to fund $5.7 million in state grants to help pay for school improvements such as roof repair and other renovations in Colorado’s Thompson School District.

The majority of Massachusetts’ cannabis-derived tax revenue, $53.8 million out of $78.8 million, was allocated to the state’s Division of Alcoholism Administration.

Illinois is dedicating $31 million in cannabis taxes to a new grant program aimed at small businesses and non-profits in disadvantaged communities.

California officials have started issuing tax warrants against unlicensed cannabis retailers throughout Los Angeles and San Bernardino counties.

Pueblo County, Colorado is set to provide $2.3 million in scholarship funding to local students using cannabis-derived taxes.

Portland, Oregon officials are redirecting $12 million from the police department toward helping communities of color; at least $2 million of the funds are derived from local cannabis taxes and fees.

Oregon’s monthly cannabis sales surpassed $100 million for the first time since the state legalized adult-use cannabis in 2015.

California officials have lowered their estimated cannabis tax revenues in light of the coronavirus and its effects on the economy, particularly the unemployment rate.

Harborside in California is continuing its challenge of the federal tax code 280E, which the company’s legal team says is unconstitutional and runs afoul of the 16th Amendment.

California cannabis taxes generated nearly $135 million during the first quarter of 2020, which is $42.4 million less than the state’s 2019 first-quarter cannabis tax revenue.

Oklahoma medical cannabis sales set a new record during April despite the ongoing coronavirus pandemic.

The New Mexico Supreme Court has been petitioned to determine whether or not medical cannabis products in the state should be tax-exempt.

Cannabis tax revenue in California has reached $1 billion since the adult-use market launched about two years ago.

Vermont lawmakers in the House have approved a Senate plan to legalize adult-use cannabis sales; some final deliberations remain, however, before the bill can head to the governor’s desk.

Data shows that Maryland’s medical cannabis industry has generated about $21.7 million in tax revenue for the state.

A court ruling in New Mexico signals that state-licensed medical cannabis companies can claim a tax deduction reserved for prescription medication.

The first year of cannabis tax revenues from Canada’s legalized market is lower than (barely half of) what the government had expected.

Tax rates on adult-use cannabis in Chicago could reach as high as 41 percent for high-potency products after local regulators approved an extra 3 percent tax on all cannabis retailers.

Non-partisan budget officials in California have suggested moving the state to a potency-based cannabis tax strategy, which would include getting rid of the weight-based cultivator tax.

The California Department of Tax and Fee Administration has announced minor excise tax hikes on cannabis flower, leaf, and plants.