Regulated Substances
What Does the 2019 Farm Bill Mean for the Hemp Industry?
Earlier this year, U.S. Sen. Mitch McConnell inserted language from his Hemp Farming Act of 2018 into the Farm Bill to federally legalize the cultivation and sale of industrial hemp. Congress passed the legislation Dec. 12, effectively removing hemp from the list of controlled substances and allowing states to regulate its production, commerce and research…
Read MoreALASKA VOTERS REJECT PROPOSED INCREASE ON ALCOHOL, TOBACCO, AND MARIJUANA SALES TAX
Proposition 1 was turned down on the October ballot for the city of Unalaska, Alaska. Voter’s had to decide whether to increase the sales tax on marijuana, alcohol, and tobacco by three percent, effectively doubling the tax. There are several other cities in Alaska that had a sales tax increase on alcohol, tobacco, and marijuana…
Read MoreTobacco Tax Audit/Refund
As cigarettes and other tobacco products are taxed on both the federal and state level, the tax compliance burdens are steep. The tobacco tax scheme is very different from other tax schemes because the product is taxed both at the federal and state level. Further, depending on the type of tobacco product being sold the…
Read MoreDrunken Slur – Fla. ALJ Rules Restaurant Rule Unclear
Presents may be coming early for businesses licensed as food establishments in the Sunshine State. Several grocerant and similar concepts popping up across the State may have foregone an attempt to obtain a consumption on premises liquor license, due to an outdated agency rule. Dining establishments are increasingly blending the grocery market and dining experience…
Read MoreCalifornia Cannabis State Tax Scheme
Going green has taken on a new meaning in the United States. Less than two decades ago, marijuana was illegal across all 50 U.S. states. Now, thirty-three states and the District of Columbia currently have passed laws broadly legalizing marijuana in some form. California activated its recreational adult-use cannabis program on January 1, 2018, and…
Read MoreMedical Marijuana Dispensaries Tax Liability Clarified in Harborside Case
A long-awaited decision came out in the end of November that affects all cannabis businesses. In this case, the Tax Court denied a California medical-marijuana dispensary’s deduction of ordinary and necessary business expenses and some of its costs of goods sold. This decision serves to provide more clarification for cannabis businesses, CPAs, and tax attorneys…
Read MoreTopGolf, Walmart, and Target Challenge Florida DBPR Restaurant Rule
Remember when food trucks were the new threat to “traditional” restaurants? Or how about the fast-casual concept that was sparked by the likes of Chipotle? Even reminiscing on sentimental moments, childhoods were forever changed with the invention of the ‘Happy Meal.’ The dining industry is everchanging, yet the Sunshine State is handicapping innovative restaurant owners’…
Read MoreBlunt Wraps Refunds Still Linger in CA
California recently amended its definition of what constitutes a taxable “tobacco product.” California taxes “tobacco products” which was defined as “all forms of cigars, smoking tobacco, chewing tobacco, snuff, and any . . . products made of, or containing at least 50 percent, tobacco.” This meant that certain products, such as blunt wraps, or cigar…
Read MoreCurrent Status of Hemp
Farmers in states where hemp is legal may be able to grow hemp under Section 7606 of the 2014 Farm Bill. In order to be in compliance, the farmer must be certified by and registered with the state department of agriculture and conducting research or a pilot program approved by the state department of agriculture.…
Read MoreCannabis Industry – Understanding and Planning for Tax Consequences on the Federal Level
The cannabis industry laws are extremely volatile, which is mainly a result of it being a new industry, creating a trial and error type of lawmaking process. However, the ever-changing laws of the industry are also driven by the many competing interests on the legality of cannabis both at the federal and state level. As…
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