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Daily Tax Report: State

Lawmakers Re-Up Bill Freeing State Legal Pot from Federal Limits (1)

April 4, 2019, 2:31 PMUpdated: April 4, 2019, 2:53 PM

A group of bipartisan lawmakers in the House and Senate reintroduced a bill to shield the state-legal marijuana industry from federal restrictions, such as a prohibition on tax deductions.

The bill would amend the Controlled Substances Act so that it wouldn’t apply to production and distribution of marijuana that is legal at the state level.

  • Tax code Section 280E prevents those trafficking in Schedule I and II drugs under the Controlled Substances Act from taking ordinary business deductions, driving up the tax rates of state-legal businesses.
  • Sens. Elizabeth Warren (D-Mass.) and Cory Gardner (R-Colo.) reintroduced the bill...
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