Harborside Wellness has lost it's battle | IRS States They Owe Millions
"The IRS insists that medical marijuana dispensaries must obey a section of tax code that prohibits companies from deducting most expenses if they are 'trafficking in controlled substances.
" The section, 280e, was designed as a tool for fighting drug trafficking," writes reporter Zusha Elinson.
"Zamarra said that the IRS letter states that Harborside can't deduct rent, payroll, health insurance or worker's compensation insurance -- deductions that are standard for many other industries.
"The only two things the IRS says the dispensary can deduct are the cost of buying marijuana and the cost of alternative health care services such as yoga, he said."
From the Desk of Steve Kubby | Chair
RMLW-2012 Committee Headquarters
Dear Readers:
Harborside has lost it's court case and the consequences for MCDs statewide will be catastrophic.
No business can afford to operate without being able to deduct it's basic operational costs. Fortunately, there is a real and effective fix to this nightmare.
The only way this IRS attack can be neutralized is by removing marijuana from the state and federal schedules of controlled substances.
Only RMLW has language that accomplished these two critical goals.
RMLW actually protects MCDs from being denied their normal business deductions.
You can read the relevant text from RMLW here:
(Section 2.)(f) Within 30 days of passage of this Act, the offices of both the state Attorney General and the Department of Public Health shall inform the United States Department of Health and Human Services, the United States Attorney General, Congress, Drug Enforcement Agency, and Food and Drug Administration that in 1996 the state of California recognized the current medical use of marijuana in treatment in the United States, and since 1996 has approved a state-regulated physician medical marijuana practice. Physicians have recommended the use of marijuana to thousands of patients. For that reason diligently demand or petition as is appropriate (see 21 CFR 1308.43, 21 USC 811-812) that marijuana and tetrahydrocannabinols as defined in §21 USC 802(16) be removed from Schedule I of the Controlled Substances Act, 21 USC 800 et seq., where it is currently listed as an addictive drug with no accepted medical use in treatment in the United States.(g) The State of California is ordered to protect and defend all provisions of this Act from any and all challenges or litigation, whether by persons, officials, cities, counties, the state or federal governments.
No other initiative provide this precise protection, nor has any state ever officially protested the federal schedule. However, under the US Constitution, states have standing over federal agencies such as the DEA and have every right to challenge and even nullify federal agency edicts. Furthermore, we go the extra step to require the State of California to protect and defend all provisions of this Act from the federal government.
Our team put a lot of thought and effort into drafting an initiative that has real teeth and a effective plan for countering all this escalating federal opposition.
PLEASE SHARE - TWEET - LIKE AND OTHERWISE PASS ALONG THIS IMPORTANT INFORMATION!
Let freedom grow,
Steve Kubby
Committee Chair
Regulate Marijuana Like Wine 2012
Campaign Committee
Campaign Committee
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