Arizona Judge Won’t Lift Medical Marijuana Restrictions for PTSD

Arizona Daily Star:  “A judge has rejected efforts by a marijuana advocacy group to quash limits set by the Department of Health Services on how and when patients with post-traumatic stress disorder can legally use the drug. In a ruling Wednesday, Maricopa County Superior Court Judge Crane McClennen said there was ‘substantial evidence’ to support the restrictions imposed last year by Will Humble, who was state health chief at the time. And McClennen said adopting the views of the Arizona Cannabis Nurses Association that the restrictions are inappropriate would amount to requiring him to substitute his own judgment for that of the health chief, something he legally cannot do.”

By |2015-07-30T08:22:41-07:00July 30th, 2015|AZ Marijuana Law Lawsuits, Dept Health Services, Stories & Articles|Comments Off on Arizona Judge Won’t Lift Medical Marijuana Restrictions for PTSD

Could Scottsdale Get Three New Medical Marijuana Dispensaries?

Arizona Republic:  “Three medical-marijuana companies are eyeing the Scottsdale Airpark for new dispensary locations as they look to tap into one of Arizona’s highest concentrations of patients authorized to use the drug. . . . The Scottsdale City Council on July 1 awarded a permit for Green Sky Patient Center, which could become the city’s second operating dispensary. . . . Scottsdale Dispensary, has applied for city approval to move its existing dispensary from Mayer — a community of 1,400 people near Prescott — into the Scottsdale Airpark”

The author of this website, Richard Keyt, is mentioned several times in this Arizona Republic story.

By |2015-07-29T09:25:57-07:00July 29th, 2015|Stories & Articles|Comments Off on Could Scottsdale Get Three New Medical Marijuana Dispensaries?

Race to Develop Pot Breathalyzer

Yahoo News:  “As cannabis bans are relaxed in more U.S. states, the race is on to develop an instant roadside breathalyzer for police to test drivers who may be taking the ‘high’ road.  Vancouver-based Cannabix Technologies Inc, founded by a retired Royal Canadian Mounted Police officer, expects to be first out of the gate with a ‘pot breathalyzer‘ – a handheld device similar to those used to detect alcohol.”

By |2015-07-15T20:57:43-07:00July 10th, 2015|Stories & Articles|Comments Off on Race to Develop Pot Breathalyzer

Appellate Court Confirms Tax Court’s Decision in Olive vs. Commissioner

Section 280E of the Internal Revenue Code is legalized marijuana businesses worst nightmare.  This statute disallows deductions from federal taxable income of all typical business expenses except the cost of goods sold.  See my previous articles below:

After losing in the U.S. Tax Court, the Vapor Room’s owner appealed to the 9th Circuit Court of Appeals.  On July 9, 2015, the Court of Appeals issued its opinion Olive vs. Commissioner,  and affirmed the Tax Court’s decision.

In a Forbes.com article called “Big Court Defeat For Marijuana Despite Record Tax Harvests” the author said,

“Should marijuana businesses pay tax on gross profits or net profits? It sounds like a silly question. Virtually every business in every country pays tax only on net profits, after expenses. But the topsy-turvy rules for marijuana seem to defy logic. . . . Now, in another blow to the budding industry, is the IRS has convinced the influential Ninth Circuit Court of Appeals that marijuana dispensaries cannot deduct business expenses, must pay taxes on 100% of their gross income. The case, Olive v. Commissioner, was an appeal from a U.S. Tax Court decision.”

Another Forbes.com article called “Ninth Circuit: Legal Or Not, Marijuana Facility Cannot Deduct Its Expenses” states,

“a decades-old provision of the federal tax code remains firmly in place, threatening to administer a painful amount of tax on marijuana facilities, and serving as a greater barrier to entry into the industry than any outdated notion of moral or ethical impropriety. The IRS has been wielding a little known Code section — Section 280E, to be exact — to wage war on medicinal and recreational  marijuana facilities. Section 280E provides that no deduction — other than the cost to purchase or grow the marijuana inventory, or Cost of Goods Sold (COGS) — shall be allowed for any amount incurred in a business that consists of ‘trafficking in controlled substances’.”

Martin Olive argued that even though he could not deduct expenses arising from his marijuana business he should able to deduct expenses attributable to his side businesses that did not involve selling marijuana.  The Court of Appeals acknowledged the concept, but after giving an example of multiple businesses it concluded that Martin Olive did not, in fact, have any business other than the marijuana business.  The Court gave the following hypotheticals:

“An analogy may help to illustrate the difference between the Vapor Room and the business at issue in CHAMP. Bookstore A sells books. It also supplies some complimentary amenities: patrons can sit in comfortable seating areas while considering whether to buy a book; they can drink coffee or tea and eat cookies, all of which the bookstore offers at no charge; they can obtain advice from the staff about new authors, book clubs, community events, and the like; they can bring their children to a weekend story time or an after-school reading circle. The ‘trade or business’ of Bookstore A ‘consists of’ selling books. It’s many amenities do not alter that conclusion; presumably, the owner hopes to attract buyers of books by creating an alluring atmosphere. By contrast, Bookstore B sells books but also sells coffee and pastries, which customers can consume in a café-like seating area. Bookstore B has two ‘trades or businesses,’ one of which consists of selling books and the other of which ‘consists of’ selling food and beverages.

CHAMP

[the tax payer in a Tax Court case where the court found the taxpayer had more than one line of businesses], the court concluded, was Bookstore B. The Vapor Room, on the other hand, was Bookstore A.

See also “Why Your Dispensary Needs to Rent More Space than Needed for its Retail Store,” which discusses the CHAMP case.

By |2017-02-04T07:38:56-07:00July 9th, 2015|Stories & Articles, Tax Issues|Comments Off on Appellate Court Confirms Tax Court’s Decision in Olive vs. Commissioner

Marijuana Growers are Wrecking California

The Fresno Bee:  ” The cost of inaction couldn’t be more clear.  Acres of ancient trees are disappearing and illegal marijuana farms are popping up in their place. Streams and rivers are being sucked dry, diverted sometimes miles away through plastic pipes into tanks. Several species of fish, along with a rare breed of wild rodent, are on the verge of extinction.  All of this is happening now, all across California, but particularly in the North Coast and in our national parks in the San Joaquin Valley. All of this environmental destruction is occurring to grow marijuana and meet consumer demand.  While there’s plenty of blame to go around for how things have turned out in the nearly 20 years since California legalized medical marijuana, much of it must land at the feet of consumers, and of lawmakers.

By |2019-06-18T19:55:49-07:00July 8th, 2015|California News, Stories & Articles|Comments Off on Marijuana Growers are Wrecking California

Healing Healthcare 3 Inc. Gets OK to Open Dispensary Near Florence

Florence Reminder & Blade Tribune:  “Rocky Pahwa finally received from Pinal County what he could never get from Florence in years of trying: a permit to operate a medical marijuana dispensary. . . . The location is just outside the town boundary at a former RV repair shop, in a county island off Arizona 79B.”  The dispensary will be owned and operated by Healing Healthcare 3, Inc.

By |2019-06-18T19:56:00-07:00July 3rd, 2015|Stories & Articles|Comments Off on Healing Healthcare 3 Inc. Gets OK to Open Dispensary Near Florence