\u201cPassage of Amendment 3 clarified the issue and normal business deductions will be allowed for marijuana related businesses.\u201d<\/p>\n
By Rebecca Rivas, Missouri Independent<\/strong><\/p>\n Marijuana companies will be able to deduct business expenses on their state taxes for the first time this year, a Missouri Department of Revenue spokeswoman confirmed to The Independent.<\/p>\n Missourians voted to legalize medical marijuana in 2018.\u00a0But under federal law, growing, transporting or selling marijuana remains a crime.<\/p>\n Because of this dynamic, marijuana companies have differed from every other legal business in the state because they weren\u2019t allowed to deduct ordinary and necessary business expenses, such as marketing or furniture costs, on both their state and federal tax returns.<\/p>\n Sen. Denny Hoskins, R-Warrensburg,\u00a0pre-filed a bill<\/a> in December to get that changed, at least on the state level. And Republicans have been trying to make the change for the last three years.<\/p>\n However, Hoskins told The Independent Friday that passage of Amendment 3, the constitutional amendment legalizing marijuana that voters approved in November, will make the deductions possible.<\/p>\n \u201cAfter further discussions with [the Department of Revenue], they believe the passage of Amendment 3 clarified the issue and normal business deductions will be allowed for marijuana related businesses, so no further legislation is necessary,\u201d Hoskins said via text message.<\/p>\n In 2021, state lawmakers approved Hoskins\u2019 bill as an amendment to a wide-ranging bill. But Gov. Mike Parson (R) vetoed the legislation<\/a> over an unrelated provision\u2014a section lawmakers included that would have provided tax relief\u00a0for businesses impacted by city-wide or county-wide public health restrictions.<\/p>\n In his letter vetoing the measure, Parson didn\u2019t mention the medical marijuana provisions.<\/p>\n Last year, a bill that included the\u00a0provision<\/a>\u00a0passed out of the Senate but stalled in the House.<\/p>\n Adolphus Pruitt, president of the St. Louis City NAACP chapter, said the change will especially benefit small businesses in the marijuana industry during their first years of operation.<\/p>\n \u201cIn those early years, businesses need to do their best to break even or try to make a return on their investment and be profitable,\u201d Pruitt said. \u201cSo those who have the ability to have those business expenses deducted to increase their bottom line\u2014just like it is for any other business\u2014is important.\u201d<\/p>\n Hoskins, who is an accountant, told legislators last year that marijuana companies were paying a higher overall tax rate on their earned income. In 2021, the effective tax rate for corporations was about 20 percent, he said.<\/p>\n \u201cYou could actually have an effective tax rate of over 70 percent, not being able to deduct these expenses,\u201d Hoskins said during a Senate committee hearing last spring, \u201cbecause you\u2019re taxed on gross profit, not on ordinary business income like other businesses.\u201d<\/p>\n In December, Missourians bought $40.25 million worth of medical marijuana, breaking the previously monthly sales record. In total, Missouri has now sold $605.31 million worth of medical marijuana since sales began in October 2020. In 2022 alone, Missouri sold more than $390 million.<\/p>\n This story was first published by Missouri Independent.<\/a><\/em><\/p>\n Wisconsin\u2019s Governor Is Ready To Sign A GOP-Led Medical Marijuana Bill If It\u2019s Not \u2018Flawed\u2019 With Excessive Restrictions<\/a><\/p>\n<\/blockquote>\n\n The post Legalization Means Missouri Marijuana Companies Can Deduct Business Expenses From State Taxes, Officials Say<\/a> appeared first on Marijuana Moment<\/a>.<\/p>\n
\u201cPassage of Amendment 3 clarified the issue and normal business deductions will be allowed for marijuana related businesses.\u201d By Rebecca Rivas, Missouri Independent Marijuana companies will be able to deduct business expenses on their state taxes for the first time this year, a Missouri Department of Revenue spokeswoman confirmed toContinue Reading<\/a><\/span><\/p>\n","protected":false},"author":457,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1335],"tags":[],"_links":{"self":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/60537"}],"collection":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/users\/457"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/comments?post=60537"}],"version-history":[{"count":1,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/60537\/revisions"}],"predecessor-version":[{"id":60538,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/60537\/revisions\/60538"}],"wp:attachment":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media?parent=60537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/categories?post=60537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/tags?post=60537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
\n
\nRead More: Legalization Means Missouri Marijuana Companies Can Deduct Business Expenses From State Taxes, Officials Say<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"