On November 29, a U.S. Tax Court judge confirmed that § 280E of the Internal Revenue Code prevents state-legal cannabis businesses from deducting ordinary and necessary business expenses from their federal taxes. The ruling is a blow to businesses in the cannabis industry, who incur significantly higher federal tax burdens than they otherwise would if, like other businesses, they were allowed to deduct their business expenses.

Section 280E declares that “[n]o deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business .… More

Kevin Conroy, former Massachusetts Deputy Attorney General, explains how companies overcome regulatory challenges of intercontinental cannabis banking on the Cannabis Reporter Radio Show with host Snowden Bishop. Click here to listen to the episode. More

Voters in conservative states pushed forward a wave of cannabis legalization initiatives during Tuesday’s midterm elections, a showing of bipartisan support that experts say bodes well for the industry as it looks to go mainstream.

Michigan’s Proposal 1, which establishes the legal and regulated sale of cannabis for adults 21 and older, passed with about 55 percent of the vote, according to the Michigan Secretary of State’s Office.… More

A Colorado federal jury sided last week with a cannabis cultivation business owner against his neighbor in one of the first Racketeer Influenced and Corrupt Organizations Act (“RICO”) lawsuits against a cannabis grower to reach a jury verdict in the nation.  The plaintiffs in Reilly v. 6480 Pickney brought suit under the federal RICO statute, arguing that certain predicate acts related to marijuana cultivation led to odors and noises emanating from the defendant’s business facility that had damaged plaintiffs’… More

With the opening of the East Coast’s first marijuana retailer just days away, consumers in Massachusetts may soon begin seeing advertisements promoting all manner of cannabis products, services, and establishments.  The state’s Cannabis Control Commission has drafted regulationsthat place restrictions on marijuana advertising, but even with those restrictions, there is still plenty of opportunity for retailers and product manufacturers to promote cannabis to consumers, particularly online and on mobile apps,… More

With July 1st now fully in the rear-view mirror, we thought it would be a good time to update you on the latest developments at the Cannabis Control Commission.  Earlier this month, the Commission approved two final retail licences for businesses in Northampton and Leicester.  These represent the very first final adult-use retail licenses awarded in the Commonwealth.  With this, Massachusetts residents should expect adult-use retail shops to open to the public within a matter of weeks. … More

GFA Federal Credit Union, a Massachusetts credit union with headquarters in Gardner, will become the first financial institution in the Commonwealth to serve the recreational cannabis industry by offering banking services to cannabis companies.  This represents a major step forward for companies in the Commonwealth’s burgeoning recreational cannabis industry, as previously most companies resorted to running cash-only operations without being able to offer customers the benefits of credit or debit purchases. … More

Last week, the CCC released two new sets of draft medical marijuana regulations so that final regulations can be promulgated in enough time for it to take over the Commonwealth’s Medical Marijuana Program by the end of the year.

The CCC released a draft of 935 CMR 501, which it calls a “lift and replace” of the existing Department of Public Health medical marijuana regulations.… More

A recent decision in a closely-watched commercial cannabis case opens the possibility for increased commercial activity in the nascent recreational cannabis market in Massachusetts.  On August 21, Judge Burroughs of the U.S. District Court for the District of Massachusetts issued a memorandum and order on motions to dismiss in Crimson Galeria Limited Partnership, et al. v. Healthy Pharms, Inc., et al, granting a victory for the named government defendants (Massachusetts Department of Public Health,… More

Attorney Jesse Alderman speaks to Cannabis Business Times about municipalities’ Host Community Agreements and offers tips on scoring an adult-use license.

“The cities and towns hold so much power in deciding when and to whom to give these Host Community Agreements,” he says. “The whole ballgame is at the municipal level in Massachusetts as I see it.”

Click here to read the full article.… More