Medical marijuana retailers to pay hefty taxes

IRS: Dispensaries cannot deduct operating expenses

New_marijuana_laws_will_raise_taxes_351110000_20130225204256

Posted: 02/25/2013
Last Updated: 87 days ago

Medical marijuana retailers will soon have to pay some hefty taxes.

The IRS has ruled that dispensaries cannot  deduct standard operating expenses like rent and payroll.  

That could mean an effective federal income tax rate as high as 75 percent.

The IRS said it is enforcing a 1982 law that was aimed at illegal drug dealers.

Agency officials said Congress should change the law if lawmakers don't want medical marijuana dealers to pay the price.

Medical marijuana is now sold in 18 states.

 

 

Copyright 2013 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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