Iowa Asks Legislature To Change State Taxing System For Medicinal Cannabis
Iowa’s Medical Cannabidiol Board recently announced it will ask the state Legislature to exempt medical cannabis products from the state’s sales tax and change its business licensing procedure for dispensaries.
Board members said the state seeks to reduce costs for business owners and patients by changing state taxing systems for medicinal marijuana.
According to a local source, that includes exempting medical cannabidiol products from the state sales tax, as well as changing how the Iowa tax code classifies the sale of controlled substances.
Cannabis is a Schedule I drug under the federal Controlled Substances Act, and the Internal Revenue Code Section 280E states that businesses selling cannabis, or any other federally illegal controlled substance, cannot deduct any expenses incurred in the production, distribution, and sale of that product.
There are no current provisions in Iowa’s tax code that states 280E does not apply, as some other states with legal cannabis have added. “(It) essentially just decouples, you know, Iowa’s tax code from the federal code for these purposes,” Owen Parker, Bureau Chief for the Board said. “They’re still going to get that hit from 280E, you know, that I mentioned at the federal level, but at the state level, that burden could be reduced.”
In addition to the tax changes, members unanimously approved other recommendations, including licensing new dispensaries, adding new board members, and changing the title of the program to the "Medical Cannabis Act."
North Carolina Tribe Begins First Legal Medical Marijuana Harvest In The State
The Eastern Band of Cherokee Indians in North Carolina has begun growing medical marijuana and hopes to open its first MMJ retail store next year.
According to The Charlotte Observer, the Eastern Band of Cherokee Indians is harvesting on tribal land about an hour west of Asheville, which …