Assembly Committee Passes NJCPA-Drafted Bill to End Unfair Taxation of Cannabis Companies
Legislation written by the NJCPA Cannabis Interest Group (A3946) that would end New Jersey's unfair tax treatment of cannabis businesses was passed by the Assembly Oversight, Reform and Federal Relations Committee on Sept. 29, 2022.
Internal Revenue Code (IRC) Section 280E forbids companies engaged in illegal drug activities from deducting business expenses. New Jersey piggybacks on this provision, in effect treating cannabis companies as if they are engaged in illegal drug trafficking.