Addresses both federal and state tax guidance on the taxation of marijuana, cannabis, or related products. The publication provides an overview of federal taxation policies related to cannabis, specifically Code Sec. 280E, the interplay between Code Sec. 280E and other code sections, and any legal issues therein related. The bulk of the publication is a state-by-state survey of how marijuana or cannabis is taxed and how manufacturers, distributors and retailers of cannabis are taxed differently.
On the federal level, the issues tend to be fairly broad. There is no direct taxation of cannabis at the federal level, so the issues turn on how cannabis is treated differently from any other business. Effectively, the federal government has wavered in how it treats cannabis, from respecting states’ rights to determine legality to treating it as an illegal narcotics trade.