National Cannabis Industry Association: “Tax Us, But Tax Us Fairly.”

On June 5, Democratic lawmakers held a press conference in Washington, DC, to advocate for a change in federal tax policy and banking laws to support legal marijuana businesses  (opens in a new tab).

Thirty-five members of the National Cannabis Industry Association joined Representatives Earl Blumenauer (D-OR), Denny Heck (D-WA),  Barbara Lee (D-CA), and Ed Perlmutter and Jared Polis  (both D-CO) in urging Congress to overhaul the tax code to allow legal marijuana dispensaries to take advantage of tax deductions.

Aaron Smith, NCIA’s executive director,  says that the legal marijuana industry is one of the only industries coming to the nation’s capital asking to be taxed. “Tax us, but tax us fairly,” he said according to a Politico  (opens in a new tab)report  (opens in a new tab).

“[Marijuana business owners] cannot claim the work opportunity tax credit if they hire a veteran, depreciate their American-made irrigation equipment, or utilize the deductions for the expenses associated with their operating costs,” said Representative Blumenauer in a report  in the Puget Sound Business Journal  (opens in a new tab). “As a result, those small businesses are paying federal income taxes that are often double or triple the effective tax rate of most businesses.”

The House members are also looking to pass legislation that would allow marijuana business owners to open bank accounts and prevent federal seizure of property  (opens in a new tab).

Ean Seeb, vice-chair of NCIA’s board of directors, said in a statement  (opens in a new tab) that the government should “treat us as you would any other business.”

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