Taxes

Illinois’ latest budget proposal would eliminate the state’s conformity with IRS Code 280E, allowing state-licensed cannabis companies to take some normal business deductions.

California’s total cannabis tax revenues for Q1 2023 topped out at $216 million, down about $32 million from the fourth quarter of last year.

For the first time since states started to pass cannabis legalization reforms, tax revenue from adult-use sales declined slightly in the U.S. from 2021 to 2022 (from $3.867 billion to $3.775 billion).

Oregon Gov. Tina Kotek (D) announced this week that the state’s cannabis companies must now prove that they’ve paid their state taxes before they can receive a license or have an existing license renewed.

New Jersey Gov. Phil Murphy (D) this week signed the state’s proposal to let licensed cannabis companies deduct ordinary, management-related business expenses from their taxes.

Colorado’s February cannabis sales this year declined 14.2% from the same month in 2022, continuing an overall year-over-year decline in both adult-use and medical cannabis sales for the state.

A bipartisan U.S. House proposal filed this week would exempt state-legal cannabis companies from the restrictions of IRS Code 280E, which has vexed modern cannabis operators for years.

Maryland lawmakers have advanced a measure to see state officials begin issuing adult-use cannabis licenses this summer.

New Mexico lawmakers are considering two new cannabis tax revenue-funded programs: one to cover community reinvestment grants and one addressing substance use disorder and prevention treatments.

Vermont cannabis retailers sold about $5.7 million worth of cannabis products in January.

A recent poll found a majority of New Jersey residents want to see the state’s cannabis tax revenues go toward funding education in the state.

Cannabis tax revenue in Colorado fell from $423 million in 2021 — during the peak of the coronavirus pandemic — to $325 million in 2022

Washington lawmakers are considering raising taxes on highly potent cannabis products, proposing a 50% tax rate for products containing between 35% and 60% THC and a 65% tax rate for products exceeding 60% THC.

Cannabis operators from every corner of the market have to deal with restrictions from IRS Revenue Code 280E but, with careful planning and tax strategies, cannabis entrepreneurs can work to reduce its impact on their business.

This week in Aurora, Colorado, officials are opening the city’s second community recreation center funded by cannabis taxes.

If Hawaii were to legalize adult-use cannabis, the state’s annual cannabis tax revenue could reach between $34 million and $53 million. Lawmakers are likely to consider a legalization proposal later this year.

Minnesota lawmakers’ proposal to legalize adult-use cannabis includes social equity considerations, home grow provisions, and an additional 8% tax on cannabis products.

Connecticut has launched its regulated adult-use cannabis market with nine retail dispensaries opening across the state on Tuesday.

Arizona sold $1.6 billion worth of cannabis in 2021 to become the second-largest cannabis market in the U.S. behind California.

Missouri became the first mid-western state and the 21st state overall to approve adult-use cannabis reforms in Tuesday’s elections.

Colorado has sold $13.4 billion worth of adult-use cannabis since its legalization in 2012, generating $2.2 billion in taxes for the state. 

The Hawaii Tax Department released projections that adult-use cannabis legalization could lead to an estimated $50 million in additional annual state revenue.

The New Jersey Assembly passed a proposal to let licensed cannabis businesses deduct certain expenses from their state tax filings; the bill still needs to pass the Senate and be signed by the governor.

On Monday, the Czech cabinet was slated to review a draft plan for addressing drug addiction in the country including launching a regulated cannabis market and increasing spending on treatment.