The Cannabis Regulatory Commission on Thursday approved a new social equity tax rate on cannabis at $2.50 per ounce — a far lower number than what was previously considered.

The vote came as the commission was considering raising the cannabis Social Equity Excise Fee to $30 for an ounce. Cannabis cultivators pay the tax, which is currently $1.24 per ounce. The vote was supported by all commissioners except for outgoing commissioner Charles Barker, who abstained.

Read the full report at

https://subscriber.politicopro.com/article/2024/12/crc-approves-social-equity-tax-to-2-50-per-ounce-of-cannabis-00194113

If this Bill were to pass, it would have a major impact on those who not only use cannabis recreationally but also impact the business owners and employees of Montana’s dispensaries. Zack Schopp, owner of Seed of Life Labs in Billings said the ripple effects of a law like this — would go beyond the marijuana industry.

“It’s detrimental to the business, to the employees of those businesses, to those government regulators who are employed, to the contractors of the building, to the real estate agents that are selling property. All of that economic opportunity that’s been created from cannabis is at stake with a Bill like that, there are over 5,000 Montanans who have jobs in the cannabis industry here, you know, what am I supposed to say to them if this goes through,” said Schopp 

Via Cannabis Industry Jnl – very intreresting development as and when Murphy signs off on it

The New Jersey legislature recently approved legislation that would allow licensed cannabis businesses to deduct ordinary business expenses on their state tax return that they are prohibited from deducting on their federal tax return, and such legislation has been sent to Governor Phil Murphy to potentially sign into law. This relates to the universally dreaded (among those in the cannabis industry, at least) Section 280E prohibition. This legislation is important because it would change current law to allow legal cannabis businesses in New Jersey to operate on more of a level playing field with other businesses in the state.

Cannabis operators and applicants are penalized by their inability to deduct certain expenses on their state and federal tax returns. The cause for this frustration is twofold. First, under federal law, cannabis is considered a Schedule I controlled substance under the Controlled Substances Act, 21 U.S.C. § 801 (CSA). Second, under IRS Tax Code Section 280E, cannabis businesses that are legal under state law are still considered drug traffickers for the purposes of federal tax law. While a related issue that is often considered along with Section 280E is whether or not it is sound public policy to continue to classify cannabis as a Schedule 1 drug, that is beyond the scope of this article.

While New Jersey’s legislators can’t change federal tax code, they are taking action to revise New Jersey’s tax code to level the playing field. Let’s hope the Governor signs into law the pending New Jersey legislation to decouple New Jersey’s tax law from Section 280E.

Read more at  https://cannabisindustryjournal.com/feature_article/new-jersey-moves-to-remove-states-280e-tax-code/