December 17, 2018 4:45 pm

280E still applies to marijuana companies, US Tax Court rules

The U.S. Tax Court ruled on a 2½-year-old case in which California-based Harborside had hoped to end 280E’s hold over the marijuana industry’s profit margins.

But the Oakland company’s hopes were dashed Friday when the court upheld the tax code.

“280E continues to negatively impact the growth of the legal cannabis industry, the jobs that it has created and state/local tax revenue that have come as a result,” the company said in a statement.

“Harborside therefore remains committed to pursuing the elimination of this impediment and will continue its efforts through the courts and Congress.”

Harborside attorney Henry Wykowski, who tried the case in 2016, called the decision disappointing but said the fight’s not finished.

“I don’t see this as ‘the war is over,’” he said. “I see this as an important battle in the war.”

Wykowski stopped short of predicting an appeal, saying it will likely take several months before the case is fully resolved.

Read More at mjbizdaily.com

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