In late June, the Supreme Court declined to hear a petition concerning federal tax code 280E. The petition, brought on by Alpenglow Botanicals of Breckenridge, Colorado, concerns numerous business deduction claims that 280E prevents cannabis companies from claiming.
A State Vs. Fed Issue
Dixie Brands (USA) Inc (OTC: DXBRF) CEO Chuck Smith said that one of 280E’s key provisions — to curtail illegal trafficking of controlled substances — leaves the Supreme Court in a bind.
The issue reflects the conflict between federal and state governments, he said.
“Until federal law is changed or legislation such as the STATES Act is implemented, the cannabis industry will continue to face the same challenges it does today, including the current 280E taxation,” Smith told Benzinga in a written response.
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‘No Error To Correct’
Lisa Pittman is a cannabis attorney in Colorado and Texas. Pittman is also the Instructor for the American Bar Association’s continuing education in cannabis law.
She’s unsurprised by the High Court’s decision, and told Benzinga that roughly 100 of the 5,000 appeals made …