How the passage of this Federal Act would affect criminal convictions and tax liabilities.
The MORE Act was passed on April 1st by the House of Representatives and is intended to go to the Senate.
At the time of this posting it is unclear whether the Senate will pass this with a majority vote.
What is the MORE Act and what does it change?
What the MORE Act aims to do is decriminalize and remove c*nnabis from the Controlled Substances Act. This Act leaves the decision to the States as to how they choose to regulate that substance. Currently, some states have already approved their own MORE Acts or similar such as California, and Colorado.
Other interesting details about the MORE Act
The MORE Act will pose an excise tax of 5% that could be increased to 8% over the next several years.
Anyone who has a nonviolent, federal cannabis conviction dating back from 1971 to the present can have their record expunged simply by filing a motion in Federal court.
Until the Federal Law aligns with state laws there are tax complexities for businesses who are paying taxes in their state but not paying Federal taxes because their business is not legal Federally.
If you have tax complexity around this industry, please get in touch with our California-based team at Milikwosky Tax Law 858-293-8755