How to Keep Your Business in the Green!
I am Oklahoma medical marijuana business attorney Ope Adegbuyi, and medical marijuana businesses in Oklahoma are subject to unique tax regulations that can be difficult to navigate.
So, here are some of the tax implications to consider when owning a medical marijuana business in Oklahoma.
Number one is 280E. Under federal law, medical marijuana businesses cannot deduct ordinary business expenses such as rent, salary, and advertising costs. This is due to a provision known as 280E which prohibits businesses that traffic in controlled substances from deducting expenses related to the sale of those substances.
The second thing would be the state and local taxes. Medical marijuana businesses in Oklahoma are subject to state and local taxes including sales tax and excess tax. It’s important to understand the specific tax regulations in your area to ensure that your business is in compliance.
The third thing would be record keeping. Medical marijuana businesses must keep detailed records of all transactions including sales, purchases, and inventory. Accurate record-keeping is essential for calculating taxes and staying in compliance with state and federal regulations.
The fourth thing would be employee taxes. Medical marijuana businesses are subject to the same employment taxes as any other business including social security and Medicare taxes, federal and state unemployment taxes, and state income tax withholdings.
The fifth thing would be some states and localities have implemented cannabis-specific taxes such as the tax on the weight or potency of the medical marijuana product. It’s important to understand the specific taxes in your area and budget accordingly.
For more information regarding this, you can contact me, a medical marijuana business law attorney in Tulsa, at oklahomamedicalmarijuana.attorney.