Missouri Gov. Mike Parson vetoed legislation Friday that would have lifted a prohibition on licensed medical marijuana companies deducting business expenses on their taxes. In his letter vetoing the measure, Parson didn’t mention the medical marijuana provisions. He said his decision to reject the bill came down to a section lawmakers included that would have provided tax relief for businesses impacted by city-wide or county-wide public health restrictions. Parson said those provisions would have created “significant unintended consequences that could greatly harm localities.” In vetoing the bill, however, the medical marijuana provision was also struck down. 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 differ from every other legal business in the state because they can’t deduct ordinary and necessary business expenses on their tax returns While federal law remains unchanged, the legislation approved nearly unanimously in both the House and Senate would have changed that for state taxes. David Smith, a certified public accountant from St. Louis County who works with numerous medical marijuana companies, said during a Senate hearing earlier this year that Missouri’s existing law could mean an effective tax rate for those businesses of 70 percent or higher.

420 Intel – Marijuana Industry News, 07/12/2021 20:00:00

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