We are petitioning the Obama Administration to reform IRS Tax Code 280E.
Section 280E of the IRS Tax Code prohibits “drug trafficking organizations” from taking the normal and necessary expense deductions allowed to all other businesses. The original intent of the law was to prevent convicted drug traffickers from keeping their ill-gotten gains.
However, the IRS is now applying 280E to dispensaries in recreational as well as medicinally legal states as part of the federal government’s campaign to end legal access to cannabis.
Due to 280E, dispensaries cannot deduct operational expenses such as payroll, rent, and utilities. This can result in an effective federal income tax rate as high as 75%.
Reform 280E so that dispensary's may pay their fair share of taxes without going bankrupt.