Legalization Means Missouri Marijuana Companies Can Deduct Business Expenses From State Taxes, Officials Say

Legalization Means Missouri Marijuana Companies Can Deduct Business Expenses From State Taxes, Officials Say
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“Passage of Amendment 3 clarified the issue and normal business deductions will be allowed for marijuana related businesses.” By Rebecca Rivas, Missouri Independent Marijuana companies will be able to deduct business expenses on their state taxes for the first time this year, a Missouri Department of Revenue spokeswoman confirmed to The Independent. Missourians voted to legalize medical marijuana in 2018. But under federal law, growing, transporting or selling marijuana remains a crime. Because of this dynamic, marijuana companies have differed from every other legal business in the state because they weren’t allowed to deduct ordinary and necessary business expenses, such as marketing or furniture costs, on both their state and federal tax returns. Sen. Denny Hoskins, R-Warrensburg, pre-filed a bill in December to get that changed, at least on the state level. And Republicans have been trying to make the change for the last three years. However, Hoskins told The Independent Friday that passage of Amendment 3, the constitutional amendment legalizing marijuana that voters approved in November, will make the deductions possible. “After further discussions with [the Department of Revenue], they believe the passage of Amendment 3 clarified the issue and normal business deductions will be allowed for marijuana related businesses, so no further legislation is necessary,” Hoskins said via text message. In 2021, state lawmakers approved Hoskins’ bill as an amendment to a wide-ranging bill. But Gov. Mike Parson (R) vetoed the legislation over an unrelated provision—a section lawmakers included that would have provided tax relief for businesses impacted by city-wide or county-wide public health restrictions. In his letter vetoing the measure, Parson didn’t mention the medical marijuana provisions. Last year, a bill that included the provision passed out of the Senate but stalled in the House. Adolphus Pruitt, president of the St. Louis City NAACP chapter, said the change will especially benefit small…

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