Weed Law, PC assists cannabis businesses and entrepreneurs with their tax law matters. We offer a variety of services with respect to tax consulting, tax audits, and litigation.
In addition, we can advise clients regarding the current Federal and California tax laws.
Under the Federal law, no trade or business expenses of a cannabis business are deductible pursuant to Internal Revenue Code Section 280E. This remains unchanged even though cannabis has been legalized in California.
In California, cannabis businesses must pay income tax, sales tax, and employment tax. Cannabis may also be subject to a local tax depending on their location. In addition, a 15% excise tax is imposed on purchasers of cannabis and cannabis products. There is also a cultivation tax of $9.25 per dry-weight ounce of cannabis flowers that enter the commercial market, a $2.75 per dry-weighty ounce of cannabis leaves that enter the commercial market, and a $1.29 per ounce of fresh cannabis plant.
Failure to pay any required tax can subject a taxpayer to penalties and interest.
If you have questions about the taxes you are subject to, or if you are the subject of an audit and need legal advice, the attorneys at Weed Law, PC can assist you.