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TAXES

SACRAMENTO – The California Senate is backing a 15 percent sales tax for medical marijuana. State officials estimate the bill approved Wednesday would raise about $250 million per year, much of it for state parks, drug treatment programs and the state general fund. Democratic Sen. Mike McGuire of Healdsburg says his bill will also generate money to 
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Before I get to my business intel, you should know that the personal tax world was roiling late last week over some fraud detected from within TurboTax. Here is the story: http://www.forbes.com/sites/kellyphillipserb/2015/02/06/turbotax-temporarily-halts-e-filing-in-all-states-amid-fraud-concerns/ Essentially, the makers of the software detected a level of fraud occurring in state tax return submissions that made them decide to completely shut down submission of 
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COLORADO TAXES | AUG 5, 2011 | Medical Marijuana as Medicine and Non-Taxable | On Tuesday, despite evidence that the tax could yield tens of thousands of dollars in revenues annually, the council decided to leave it off the ballot. - Council member Bob Saunders said that since the town doesn’t have an excise tax on pharmaceuticals, he doesn’t see why it would tax medical marijuana.
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Tax attorney - Robert W. Woods, states: "Sales tax isn’t the only issue. As I noted here, the IRS also has issues with medical marijuana. Under federal tax law, Internal Revenue Code Section 280E precludes deductions for any business trafficking in controlled substances. For that reason, some dispensaries have been stuck paying tax on their gross income, not on their net after expenses!
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Jan 2011 - Arizona | Attorney General Tom Horne is using a loophole in Prop 203 (the medicalmarijuana law that voters passed in 2010) on which to base his sales tax ruling. The law says would-be medical marijuana patients can get a “doctors’ recommendation” for the drug– not a prescription. Prescriptions are not taxable; doctors’ recommendations are. (This is like saying your doctor recommended aspirin or multi-vitamins; when you go to buy the aspirin or multi-vitamins, they are subject to sales tax.)
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