Event coincides with Americans for Tax Reform release of white paper on the need to reform Section 280E of the Internal Revenue Code 

MEDIA ADVISORY
For Press Conference on Thursday, September 12, 2013

Washington, DC – On Thursday, Rep. Earl Blumenauer (D-OR) and Americans for Tax Reform (ATR) president Grover Norquist will hold a press conference to discuss ATR’s release of a white paper entitled Legal Cannabis Dispensary Taxation: A Textbook Case of Punishing Law-Abiding Businesses Through the Tax Code. The paper discusses Section 280E of the tax code, which is misapplied to legal cannabis businesses and creates an effective tax rate two to four times that of other small businesses. Mr. Norquist will also announce Americans for Tax Reform’s endorsement of H.R. 2240, the Small Business Tax Equity Act, which was introduced by Rep. Blumenauer and is strongly supported by the National Cannabis Industry Association.

From the report:

Abstract: Section 280E of the Internal Revenue Code (IRC) creates a gross receipts tax situation for legal cannabis dispensary small businesses. This is due to an accident of history and a perversion of Congressional intent. ATR supports fixing this mistake. H.R. 2240, the “Small Business Tax Equity Act of 2013” does so. ATR urges all Congressmen to support this common-sense legislation.

What’s the issue? Under tax law, legal cannabis dispensaries are unable to claim the ordinary and necessary business expense deductions that any other legal business can claim.

What tax penalties do legal cannabis dispensaries face in these states? Like any other business, cannabis dispensaries must pay taxes on all business revenues. Unlike other businesses, however, this industry cannot deduct ordinary and necessary business expenses to arrive at a true taxable business profit. In essence, they pay a gross receipts tax instead of an income tax.

What: Press conference to present Americans for Tax Reform’s white paper, Legal Cannabis Dispensary Taxation: A Textbook Case of Punishing Law-Abiding Businesses Through the Tax Code

Where: House Triangle, US Capitol, 1 1st Street SE, Washington, DC 20510 (The House Triangle is located on the south side of the Capitol, directly inside the New Jersey Ave. entrance).  In case of inclement weather, the press conference will take place at 210 Cannon House Office building.

When: Thursday, September 12, 11 a.m.

Who: Representative Earl Blumenauer (D-OR)

Grover Norquist, President, Americans for Tax Reform

Aaron Smith, Executive Director, National Cannabis Industry Association

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The National Cannabis Industry Association (NCIA) is the only national trade association working to advance the interests of cannabis-related businesses in the US. NCIA promotes the growth of a responsible and legitimate cannabis industry and works for a favorable social, economic and legal environment for that industry in the United States.