IRS - Cannabis Industry Facing High Cost Challenges As Tax Day Approaches | Benzinga
As the tax filing deadline of April 15 approaches, it's intriguing to examine the fiscal challenges and structural injustices faced by the cannabis industry.
That's why we've prepared some back-of-the-envelope calculations: The cannabis sector has contributed significantly to states where it is legal. According to official data from the Census Bureau, approximately $2.8 billion in taxes were collected from the cannabis industry across all states in 2023.
The impact of the cannabis industry on state revenues is notable. Data indicates that Alaska, Montana, Washington and Colorado collected an astonishing 1% of their total taxes from marijuana, while Oregon collected 0.79%, Michigan 0.7%, Maine 0.59%, Oklahoma 0.39%, and California 0.23% (which, given its vast economy, equates to $160,000 in Q4 2023 alone and $1.7 billion since data has been available starting Q3 2021). However, this landscape may shift in the future.
Tax Injustice And The Unregulated Market
While the DEA's decision on cannabis scheduling is pending, following recommendations by US Health and Human Services to reclassify marijuana and remove it from the list of highly controlled substances, cannabis companies are subjected to higher taxes than typical businesses due to the IRS's 280e code, which prohibits ...