ABSTRACT
This chapter addresses the basics regarding the taxation of the cannabis industry. It begins by examining the history of 280E, the provision of the tax code that is the bane of the cannabis industry. Then several major cannabis cases are examined. In addition to issues of federal taxation, the chapter also looks at how states, as the primary regulators of the cannabis industry, tax businesses. Common forms of state-level taxation include sales tax and excise taxes as well as licensing fees, which function as another form of taxation.
