Massachusetts Sales Tax Audit and the Cannabis Industry
Massachusetts enacts cannabis equity law. L. 2022, S3096, effective for tax years beginning 01/01/2022 , promotes equity in the cannabis industry by allowing a deduction for any amount paid or incurred during the taxable year in carrying on the trade or business of a marijuana establishment or a medical marijuana treatment center that would have been deductible but for IRC § 280E. The law also exempts marijuana products and marijuana accessories from the cigarette excise tax, except for marijuana accessories manufactured to also deliver nicotine which are considered an electronic nicotine delivery system subject to the excise tax. Further, the law allocates 1% of total sales price received from a marijuana retailer that is a social equity business to a Social Equity Trust Fund to provide loans and grants to cannabis entrepreneurs who qualify as social equity and economic empowerment applicants.
Massachusetts Sales Tax Audit and the Cannabis Industry
