Cannabis Taxes

Whitney Economics has sharply downgraded its long-term forecast for the U.S. cannabis market, slashing its 2025–2030 retail sales projection by $21.1 billion compared to estimates made just a year ago. The downward revision, revealed this week by the cannabis data and consulting firm, reflects...

Since Colorado and Washington took the historic step of legalizing recreational cannabis in 2014, the marijuana industry has rapidly expanded, with tax revenue emerging as one of the most significant financial outcomes. The growing legal cannabis market across the U.S. has generated billions of...

As cannabis sales soar in states with legal markets, excise taxes have emerged as a crucial factor shaping the industry. Unlike tobacco, cannabis remains free from federal excise taxes but faces significant state-level levies. The structure and scope of these taxes vary widely, often influencing...

U.S. states have adopted different tax structures in their respective recreational cannabis markets, each with its pros and cons. Insights from a recently published article by the Tax Foundation show that ad valorem taxes, which are based on the sales price of cannabis, are still the simplest to...

Marijuana companies would be "treated like normal businesses," if the oppressive restrictions of Section 280E of the Internal Revenue Code, which prevents cannabis businesses from deducting typical business expenses, go away. That's according to Darren Weiss, president of Verano Holdings Corp. (...

In a recent report, Pablo Zuanic, senior analyst at Zuanic & Associates, analyzes the debt maturities of over 20 multi-state operators (MSOs) in the cannabis industry. This comprehensive review follows Ascend Wellness's significant $200 million debt refinancing. Ascend Wellness Holdings (...

Some European cannabis companies are already planning initial public offerings (IPOs) on the Nasdaq, encouraged by the prospect of a less restrictive regulatory environment. The potential rescheduling of cannabis to Schedule III of the Controlled Substances Act and Germany’s...

Breweries in Minneapolis now offer hemp-derived, THC-infused drinks on tap, thanks to a new Minnesota law effective July 1. This change allows taprooms to serve these drinks on tap, not only in cans, provided they display the required label information. Dan Schnabel, taproom manager at Headflyer...

Too many dispensaries can be a bad thing. That’s according to a panel of experts, who gathered for “Retail in the Garden State: The Municipal Control Effect” at the Benzinga Cannabis Market Spotlight on Monday (June 17) in New Brunswick, New Jersey. Municipalities often see...

Cannabis companies are bracing for a cash flow boost. President Biden's decision to reschedule cannabis could free up over a billion dollars in tax breaks thanks to the elimination of the burdensome IRS code 280E. This tax code currently prevents cannabis businesses from deducting normal...

In May 2024, the Illinois Department of Financial and Professional Regulation noted a significant increase in adult-use cannabis sales, amounting to $144.5 million – a 9.5% rise from April 2023’s $132 million. However, sales experienced a slight decline from March’s $148.9 million...

The Canadian government unveiled its 2024 budget on Tuesday and there was no excise tax relief for cannabis companies the industry was hoping for.  In February, the House of Commons Standing Committee on Finance recommended limiting the excise tax rate to 10%, igniting optimism across the cannabis...

According to a recent official report, the Canadian government is considering revising the excise tax framework established in 2018 for the cannabis industry. Originally designed to collect taxes amounting to approximately 10% of the industry's gross revenues, the reality has been...

The Internal Revenue Service (IRS) recently cleared up confusion for cannabis businesses regarding cash transactions and tax reporting. The agency issued a memo emphasizing that involvement in the federally prohibited marijuana industry should not automatically trigger suspicion when reporting...

They promised that weed would generate a bunch of tax revenue. And they held up their end of the bargain. As New York cannabis dispensary The Travel Agency: A Cannabis Store celebrates its first anniversary, its financial contribution to the state's coffers is palpable. According to management...