Megan Mosely
02-10-2025
Oklahoma Sen. James Lankford introduced a bill to block tax deductions for marijuana businesses, drawing questions from some industry advocates.
"He's announcing filing a bill to do something that's basically already in place," said Jed Green of Oklahomans for Responsible Cannabis Action.
Lankford's bill, named the "No Deductions for Marijuana Business Act," aims to prevent marijuana businesses from deducting business expenses from their taxes, ensuring that the sale of marijuana won't be eligible for tax deductions.
"Marijuana doesn't make our families stronger, our streets safer, or our workplaces more productive. Businesses who sell federally illegal drugs — including marijuana businesses — shouldn't get federal tax breaks," Lankford said.
Green argued that marijuana businesses already comply with existing tax laws.
"When marijuana businesses file taxes, they file under something called 280E. Under that, you're not permitted to deduct any typical expenditures except for the cost of goods sold," Green said.
Green said he believes the legislation will not significantly impact the industry.
"What that means is that some growers can deduct taxes. However, your dispensaries, any advertising, bud tenders, none of that can be deducted. So, he's kind of beating a dead horse and is against the tide here, which there are 22 other states that have allowed this," Green said.The bill now heads to committee for further study.
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