On May 23, 2018, we published revised versions of our Privacy Policy and User Agreements. Please read these updated terms and take some time to understand them. Your use of our services is subject to these revised terms.
Yes, I Agree.

420 with CNW — Missouri Legislators Advance Medical Cannabis Tax Deduction Bill to Governor’s Desk

In 2018, voters in the state of Missouri legalized medical cannabis. Despite this, the sale, distribution and cultivation of cannabis is still illegal in the state under federal law. This has created some challenges for the infant industry. For instance, cannabis companies in the state aren’t allowed to deduct business expenses on their taxes, despite being legal businesses.

During a Senate hearing held earlier in this year, Senator Denny Hoskins raised the issue, noting that cannabis business owners who weren’t allowed to deduct business expenses on their tax returns had to pay significantly higher taxes.

In the legislative session that recently ended, legislators in the state of Missouri approved a bill that will allow medical cannabis companies to deduct business expenses on their tax returns. The legislation, which was approved with almost no opposition, has been advanced to Gov. Mike Parson’s desk.

This bill will permit medical cannabis businesses that are authorized under the state’s constitution to claim income tax deductions in any amount equal to their expenditures. It should be noted, however, that a provision in the tax code prevents deductions for expenses that are sustained while operating any business or trade that is made up of or involves the trafficking of controlled substances.

While the federal law is yet to be altered, this legislation will ease some of the burden that cannabis business owners in the state bear. Under the federal law classification of substances, cannabis is categorized as a Schedule I controlled substance. This clause is used by the Internal Revenue Service (“IRS”) to prevent marijuana businesses from deducting business expenses on their returns.

Missouri Medical Cannabis Trade Association executive director Andrew Mullins noted that by making this change, legislators in the state were putting medical marijuana businesses on a level playing field with other small businesses in the state in terms of taxes.

CPA David Smith, who works with various medical cannabis companies, noted that the current law could mean an effective tax rate for businesses of 70% or more, adding that some companies may be subject to income taxes, despite operating at a loss.

Hippos Cannabis CEO Nicholas Rinella explained that this was because, without the deductions, companies had to pay taxes on gross profit instead of gross income. He added that sometimes, expenses could outweigh the income of a business, particularly if it was just starting out. Rinella also noted that this taxation level limited the industry’s ability to reinvest in communities, create employment opportunities and serve patients.

This change in Missouri is a much-needed one in all jurisdictions where cannabis companies operate. As those tax deductions are rolled out, companies such as Hero Technologies Inc. (OTC: HENC) will be at par with other licensed businesses.

NOTE TO INVESTORS: The latest news and updates relating to Hero Technologies Inc. (OTC: HENC) are available in the company’s newsroom at https://cnw.fm/HENC

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)

For more information please visit https://www.CNW420.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer

Do you have questions or are you interested in working with CNW420? Ask our Editor

Denver, Colorado
303.498.7722 Office

CNW420 is part of the InvestorBrandNetwork.


Select A Month

Official NewsWire Relationships

Alternative Products Expo Benzinga Cannabis Capital Conference Cannabis Business Summit & Expo 2019 Cannabis Drinks Expo Cannabis World Congress & Business Exposition Cannexpo Marigold PR MjMicro Conference New England Cannabis Network O'Cannabiz Conference & Expo Tether BudTender Tether BudTender Appreciation Week

CannabisNewsWire Currently Accepts



Bitcoin Cash

Bitcoin Cash

Doge Coin






USD Coin

USD Coin

Contact us: 303.498.7722