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Federal Politicians Announce Commonsense Tax Reform For Legal Marijuana Businesses

Category: News | Posted on Thu, April, 9th 2015 by THCFinder
 
marijuana taxes tax

(via dailyfinance.com)

Today, Representative Earl Blumenauer (D-OR-03) and Senator Ron Wyden (D-OR) announced plans to introduce bicameral legislation next week that would reconcile state marijuana laws and federal tax law. The Small Business Tax Equity Act, which was introduced last Congress by Congressman Blumenauer, would create an exception to Internal Revenue Code Section 280E to allow marijuana businesses operating in compliance with state law to take deductions associated with the sale of marijuana like any other legal business.
“More than two-thirds of Americans now live in jurisdictions that have legalized either the medical or adult use of marijuana. It’s time for the federal government to catch up,” said Congressman Blumenauer. “Section 280E creates an unequal and unrealistic tax burden on these businesses. I’m excited to work with Senator Wyden in introducing the Small Business Tax Equity Act, which would bring much needed fairness and level the playing field for small businesses that follow state laws and create jobs.”

“Our legislation would provide an overdue update to federal tax law, which has not caught up to the fact that it’s 2015 and Oregonians have voted both to legalize medical marijuana and to regulate marijuana for recreational use,” Senator Wyden said. “This is a question of standing up for the people of Oregon, and ensuring that the federal government respects the decision Oregonians have made at the ballot box.”

Twenty-three states, the District of Columbia and Guam have passed laws allowing for the legal use of medical marijuana. An additional 12 states have passed laws allowing the use of low-THC forms of marijuana to treat certain medical conditions. In many of these jurisdictions, patients can access medicine safely through state-regulated dispensaries.

The federal tax code, however, prohibits anyone selling Schedule I or Schedule II substances from deducting business expenses associated with the sale of marijuana from their taxes. Marijuana is a Schedule I substance. Therefore, even businesses operating in compliance with state law are not allowed to deduct the common expenses of running a small business, such as rent, most utilities and payroll. They cannot claim the Work Opportunity Tax Credit if they hire a veteran, and they are limited in lawful deductions relating to construction or operation costs if they want to remodel a building for their retail operations.

In certain circumstances, legal marijuana businesses can pay federal income tax rates at nearly 90 percent, while the U.S. Small Business Administration estimates that many small businesses pay an effective rate of around 20 percent.

“Congress never intended to impose a gross receipts tax – and that’s pretty much what we have here – on legal business owners decades in the future,” said Grover Norquist, President of Americans for Tax Reform. “The intent of the law was to go after criminals, not law abiding job creators. Congress needs to step up and clarify that this provision has become a case study in unintended consequences.”

“The small businesses that make up the legal cannabis industry are working overtime to be responsible, contributing members of their communities,” said Aaron Smith, Executive Director of the National Cannabis Industry Association. “So it’s particularly outrageous that when they to do the right thing by paying their federal taxes, they end up penalized with double and triple tax rates. Instead of being able to create more jobs, increase salaries, or add benefits for their employees, these businesses are being forced to send more than two-thirds of their profits straight to the federal government. Rep. Blumenauer and Sen. Wyden are standing up for fairness and support for small business – something everyone should applaud. We certainly do.”

Source:http://www.theweedblog.com/politicians-announce-tax-reform-legal-marijuana-businesses/


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Feds Want to Grow More Pot In 2015

Category: Medical Marijuana | Posted on Thu, April, 9th 2015 by THCFinder

For the second year in a row, federal officials are seeking permission to grow more weed. Yes, you read that correctly. On Wednesday, the administrator of the US Drug Enforcement Administration, Michele Leonhart, posted a proposal in the US Federal Register that seeks to allow the agency to increase its marijuana production quota for the year 2015 three-fold. Interested parties have 30-days to file public comments before federal officials can act on the DEA’s request.

Specifically, the DEA wants to permit the only federally licensed pot farm, which is located at the University of Mississippi -- and was recently retained as Uncle Sam's marijuana grow op -- to grow a whole lot more weed before year’s end.

For decades, U-Miss has cultivated set quantities of cannabis for use in federally approved clinical trials (regulators at the DEA, the FDA, Public Health Service and the National Institute on Drug Abuse must approve any clinical protocol seeking to study the plant’s effects in human subjects). But for most of this time there has been little demand for federally grown herb, largely because government officials had strongly discouraged any research into the discovery of the plant’s potential benefits.

However, according to the DEA’s latest public notice, the Feds are having a sudden change of heart. The agency says that the increased production is necessary because “research and product development involving cannabidiol is increasing beyond that previously anticipated for 2015.” In 2014, eleven states enacted laws pertaining to the use or study of CBD and several more are poised to enact similar measures this year.

The agency further acknowledges having received increased requests from NIDA “to provide for ongoing and anticipated research efforts involving marijuana.” These would include a series of Colorado state funded studies assessing the use of cannabis in patients with post-traumatic stress, inflammatory bowel disorders, cancer and chronic pain.

In 2014, the DEA similarly requested permission to increase its marijuana production quota. The Feds current menu of available pot strains and prices is now online here.

Source:http://www.hightimes.com/read/feds-want-grow-more-pot-2015


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What strain are you smoking on today?

Category: Tokers | Posted on Wed, April, 8th 2015 by THCFinder


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Marijuana Harvested for Medical Use in Chile

Category: Medical Marijuana | Posted on Wed, April, 8th 2015 by THCFinder

SANTIAGO, Chile (AP) -- A Chilean municipality harvested legal medical marijuana Tuesday as part of a government-approved pilot project aimed at helping ease pain in cancer patients.

The harvest comes after Chile's first planting of pot for medical uses in October 2014. It is the work of a municipality in the capital of Santiago and the Daya Foundation, a nonprofit group that sponsors pain-relieving therapies.

"We're laying the foundations for what will be the national production of medical cannabis," Daya's president, Ana Maria Gazmuri, said after cutting branches from cannabis plants.

Oil extracted from about half of some 850 plants imported from the Netherlands will be given to 200 patients in the coming months.

Planting, selling and transporting marijuana is usually illegal in Chile and carries prison terms of up to 15 years. But the law allows medical use of marijuana with the authorization of several ministries.

The Chilean experiment adds to an international trend of easing restrictions on marijuana for medical or personal use. More than 20 U.S. states allow some form of medical marijuana and Colorado and Washington have legalized personal use. In the Americas, Uruguay became the first nation to create a legal marijuana market in 2013.

"It's a huge achievement," said Cecilia Heyder, who suffers from systemic lupus and was diagnosed with breast cancer in 2011. "I just wish all of Chile's municipalities could achieve this as well."

Chilean lawmakers in a health commission approved a plan to legalize the planting of marijuana. The measure would allow planting of up to six plants for recreation use, but it still needs to be approved by both houses of Congress.

Source:http://www.hightimes.com/read/marijuana-harvested-medical-use-chile


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