 Marijuana Moment reported that New York lawmakers have just presented their governor with a new budget proposal that includes provisions for cannabis businesses to take some new state tax deductions.
Currently cannabis businesses are barred from taking most typical business deductions on their federal tax returns, due to the dreaded tax code 280E. Most states mirror federal tax policies in their own state codes. As a result of this tax code, industry groups and accounting firms both agree that a cannabis company could effectively end up pay up to 80 percent of their revenue to taxes. New York is one of the states that have taken measures to protect this industry and help alleviate some of their tax burden. Legislative leaders in both chambers agreed to proposals which add new exceptions for cannabis taxes. Basically, the state would not tax cannabis companies for the items the federal government disallows under 280E. If this policy is signed into law by the governor, it would take effect immediately and apply to taxes beginning with 2022. Comments are closed.
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