4 minute read
Reeferfront Times
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[WEED LAWS]
Green Light
Missouri marijuana companies can now deduct business expenses on state income taxes
Written by REBECCA RIVAS
This story was originally published by the 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 to the Independent.
Missourians voted to legalize medical marijuana in 2018. But under federal law, growing, transporting or selling marijuana remains a crime.
Because of this dynamic, marijuana companies have differed from every other legal business in the state because they weren’t allowed to deduct ordinary and necessary business expenses, such as marketing or furniture costs, on both their state and federal tax returns.
Senator Denny Hoskins, arrensburg, pre filed a bill 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.
However, Hoskins told the Independent Friday that passage of Amendment , the constitutional amendment legalizing marijuana that voters approved in November, will make the deductions possible.
“After further discussions with [the Department of evenue], they believe the passage of Amendment clarified the issue and normal business deductions will be allowed for marijuana-related businesses, so no further legislation is necessary,” Hoskins says via text message.
In , state lawmakers approved Hoskins’ bill as an amendment to a wide-ranging bill. But Governor Mike Parson vetoed the legislation over an unrelated provision — a section lawmakers in-
Due to Amendment 3 marijuana companies will be able to deduct business expenses. | VIA FLICKR
cluded that would have provided tax relief for businesses impacted by city wide or county wide public health restrictions.
In his letter vetoing the measure, Parson didn’t mention the medical marijuana provisions. ast year, a bill that included the provision passed out of the Senate but stalled in the House.
Adolphus Pruitt, president of the St. ouis ity NAA P chapter, says the change will especially benefit small businesses in the marijuana industry during their first years of operation.
“In those early years, businesses need to do their best to break even or try to make a return on their investment and be profitable,” Pruitt says. “So those who have the ability to have those business expenses deducted to increase their bottom line — just like it is for any other business is important.”
Hoskins, who is an accountant, told legislators last year that marijuana companies were paying a higher overall tax rate on their earned income. In , the effective tax rate for corporations was about percent, he said.
“ ou could actually have an effective tax rate of over percent, not being able to deduct these expenses,” Hoskins said during a Senate committee hearing last spring, “because you’re taxed on gross profit, not on ordinary business income like other businesses.”
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 . In alone, Missouri sold more than $390 million. n
[WEED STUDIES]
Not So Sweet
More young children are eating cannabis edibles by mistake, study finds
Written by LEE DEVITO
Agrowing number of children in the U.S. have accidentally consumed cannabis-infused edibles in recent years, according to a new study.
The report, published last week in the journal Pediatrics, analyzed data from the National Poison Data System. It found a staggering 1,375 percent increase in reported cases of children under the age of six accidentally eating cannabis-infused products over the past five years, from 2017 to 2021.
Nearly all of the 7,043 incidents, or 97 percent, occurred at home, and in 22.7 percent of cases children were admitted to a hospital.
Cannabis-infused edibles “are particularly appealing to toddlers because they resemble common treats such as candies, chocolates, cookies or other baked goods,” the authors wrote. And this can be dangerous, because a small amount of edibles can contain a large amount of THC, the substance in cannabis that gets you high, especially for a young child.
“If a child opens a pack of [cannabisinfused] gummy bears, they’re not likely to stop at one. Kids enjoy candy,” says Dr. Marit Tweet, one of the study’s co-authors, according to the BBC. “They may consume the whole package.”
Fortunately, it’s almost impossible to overdose on cannabis. According to the study, the most common reported effect was central nervous system depression, which includes drowsiness and lethargy, and other effects include ataxia (loss of control of movement), agitation and confusion.
In about 36 percent of the cases, the children were treated and released, and less than 2 percent developed more severe effects.
No deaths were reported by the study.
A growing number of states have legalized cannabis in recent years. The study found an increase in incidents during the COVID-19 pandemic, with Tweet telling the BBC she theorized that the lockdowns could have led to increased opportunities for exposure.
Experts advise parents to keep cannabis-infused edibles in a hard-to-reach spot or locked up, away from other food.
If a child accidentally consumed a cannabis-infused edible, parents are urged to call the poison control hotline at 800-222-1222. n
