With Florida voters backing medical marijuana at the polls back in November, a South Florida Republican wants to make sure marijuana businesses are taxed fairly.
On Thursday, U.S. Rep. Carlos Curbelo, R-Fla., teamed up with U.S. Rep. Earl Blumenauer, D-Oreg., to bring out the “Small Business Tax Equity Act” which changes Section 280E of the Internal Revenue Code which ensures that businesses which sell marijuana are not able to deduct their expenses from their taxes. Noting that several states now allow the sale of medical marijuana, Curbelo and Blumenauer propose to allow businesses that are legally allowed to sell marijuana deduct their expenses just like other businesses do.
Curbelo said his proposal was all about fairness.
“One of my goals in Congress is to ensure the law treats all enterprises with fairness and equity; giving them the opportunity to grow and prosper,” Curbelo said. “This bill clarifies our federal tax code for those marijuana businesses operating legally and in compliance with state regulations by providing tax parity. The IRS code should afford all businesses selling legal products the opportunity to make appropriate deductions. This legislation is consistent with our federalist model of government, respecting states' rights and the decisions made voters all across the country.”
“As more states follow Oregon’s leadership in legalizing and regulating marijuana, too many businesses are trapped between federal and state laws. It’s not right, and it’s not fair,” said Blumenauer. “This discriminatory tax law undercuts the effort to bring this industry out of the shadows, advance the rule of law, and tilts the playing field against small businesses that are following state laws and creating jobs.”
The proposal won the support of a number of groups including Americans for Tax Reform, the National Cannabis Industry Association, Drug Policy Alliance, Marijuana Policy Project, Americans for Safe Access and NORML.
Curbelo and Blumenauer have sent a letter to their congressional colleagues, noting that more than 30 states, including Florida, permit the legal selling of marijuana in some form or another. In that letter, the two congressmen insist treating marijuana businesses like other industries will ensure they play by the rules.
“Barring marijuana businesses from operating like a normal industry encourages criminal activity and tax evasion, deterring good legal actors from opening in the first place and forcing other underground,” they wrote.
The bill is being championed in the Senate by U.S. Sen. Ron Wyden, D-Oreg., with U.S. Sen. Rand Paul, R-Ky., as the chief co-sponsor.
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