Oakland-based dispensary Harborside is continuing to fight industry-hated tax rule 280E in federal court.
At WeedWeek, Hilary Corrigan writes:
The company appealed a 2019 U.S. Tax Court ruling that found it had underpaid its taxes by $11M between 2007 and 2012. The discrepancy relates to section 280E of the federal tax code, which denies tax deductions and credits to businesses dealing in illegal drugs…
The dispensary wants the U.S. Court of Appeals for the Ninth Circuit to rule 280E unconstitutional. “Harborside wants to be treated just like Whole Foods or Kroger,” Harborside’s attorney James Mann, a partner at Greenspoon Marder LLP said.
Failing a ruling of unconstitutional, Harborside would like the court to endorse its accounting practices. No decision is likely before 2021.
