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Cannabis MSOs Using Tax Liability Loopholes To Fund Operations, Which Ones Top This Analyst’s List?

Federal prohibition makes it difficult for a cannabis business to operate fair and square. Not only is it depriving them from access to the financial system, but it also denies them the right to any U.S. federal income tax deduction for ordinary and necessary business expenses, despite being recognized as a legal business on the state level.

CSE:CURA

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CA Cultivation Tax Elimination, Meaningfully Eases Pricing Pressures And Likely Drives Consolidation

July 6, 2022: Last week, California’s onerous cultivation tax ($161/lb.) was officially eliminated. While far from solving all the issues for California operators, the tax change meaningfully reduces the break-even threshold for growers and particularly those with the biggest scale in capacity.

AAWH