CANNABIS: AN OVERVIEW
As of November 1, 2019, Michigan started accepting license applications for commercial cannabis with the first commercial cannabis stores opening as early as December 1, 2019. Getting a license is no easy task and once obtained, banks are slow to open accounts for fear of risking their charters through inadvertent money-laundering. “Banking has become, through regulations, a bit of the front-line law enforcement as it relates to financial crime,” says Patricia Herndon. The Bank Secrecy Act of 1970 requires financial institutions to report transactions in excess of $10,000, which makes banking for cannabis clients something of a burden because of the extra staff and training required. The IRS is also another challenge for cannabis companies; because of the Internal Revenue Code’s Section 280 E, all deductions and credits for amounts paid or incurred in the illegal trafficking in drugs listed in the Controlled Substances Act are disallowed – government only allows the cost of goods sold as a deduction. Payroll, rent, advertising and any other overhead or normal costs are disallowed to cannabis businesses and their effective tax rate ridiculously high. As the laws change regarding cannabis these laws impact custody and parenting time cases in my line of work.
Cannabis is an ever growing industry. One can expect innovation from product development to retail sales and from manufacturing to marketing as various cannabis vendors are moving into the food and beverage industry. Advertising for cannabis is restricted; however, various cannabis companies are able to share on social media in different manners. Ronald Ahrens, “The Next Gold Rush” Complexity, risk and frustration abound as the recreational cannabis industry in Michigan moves out of the shadows. dbusiness November/December 2019 https://www.dbusiness.com/business-features/the-next-gold-rush/
Interesting fact: Hemp has been used for over 10,000 years. It has been useful for its fiber. The Declaration of Independence and the United States Constitution were written on hemp paper.
For more information regarding the cannabis industry and how the new laws will potentially affect users and sellers in family law cases, please contact Spindler and Associates. We have years of experience and know the laws and court procedures for Oakland, Livingston, Genesee and Washtenaw Counties where our attorneys have practiced for years. Contact Kathryn Wayne-Spindler & Associates at 248-676-1000 to schedule a consultation. The Oakland County law office is conveniently located in Milford, Michigan. Our service area includes these communities: Milford, Waterford, Walled Lake, Commerce, Highland, Hartland, White Lake, Commerce, South Lyon, Linden, New Hudson, Wixom, Holly, Fenton, Grand Blanc and many more.