The Massachusetts Appeals Court has vacated a preliminary injunction issued in January by a Superior Court judge to prevent the City of Cambridge from enforcing an ordinance that delays medical cannabis facilities (“MTCs”) from converting to adult-use facilities. The Appeals Court’s order in Revolution Clinics II, Inc. v. City of Cambridge was issued by a single justice on April 24, 2020, and reverses the Superior Court on narrow grounds.… More
Monthly Archives: April 2020
Treasury Report Recommends Increased Audits of Cannabis Companies and Highlights Potential Section 280E Relief
On March 30th, the Treasury Inspector General for Tax Administration (“TIGTA”) released a report which concluded, based on its estimates, that the IRS could have collected significant additional tax revenue from cannabis companies if IRS audits of such companies were increased. In particular, TIGTA reported on potential income tax deficiencies arising from the denial of business deductions and credits under Internal Revenue Code Section 280E.
As a general matter,… More
On April 20, United Cannabis Corporation filed a Chapter 11 bankruptcy petition for reorganization in Colorado. The Bankruptcy Court for the District of Colorado has previously dismissed bankruptcy cases for marijuana businesses due to the substances’ federally illegal status. In In re Rent-Rite Super Kegs W. Ltd., 484 B.R. 799 (Bankr. D. Colo. 2012), the court found that there was “cause” under 11 U.S.C. § 1112(b) to dismiss the debtor’s Chapter 11 case because the debtor was violating the Controlled Substances Act by renting space in its warehouse to parties who were growing marijuana. … More
A Massachusetts Land Court judge has ruled that a Mansfield RMD license-holder can use its property for adult-use sales even though the property is not locally zoned for adult-use sales. The Land Court’s decision provides strong authority for RMDs provisionally licensed before July 1, 2017 who would like to expand to adult-use operations.
The case is Rosenfeld v. Town of Mansfield. Rosenfeld and her licensed RMD,… More