Cannabis Retailers Under Duress: The Problem And The Solution
Even though there are record revenues and record state tax receipts, cannabis retailers are struggling. IRS Section 280e puts a heavy burden of additional federal business taxes on cannabis retail businesses. The greatest share of business risk is borne by main street: smaller businesses, and women & BIPOC-owned businesses. IRS Section 280e puts the effective tax rate for cannabis operators at between 60% – 70%. Retailers are hit hardest by this policy. Data on cannabis retailer sales tax payments in Oregon indicate that retailers are increasingly falling behind on their payments. On averag...
Source: benzinga.com