Recently, Ritter Spencer’s Chelsie Spencer sat down with Texas based tax attorney Vu Le to discuss cannabis law and its interaction with IRS 280E. As you will hear Vu discuss in the video, Section 280E of the Internal Revenue Code prohibits medicinal and recreational marijuana companies from deducting normal business expenses, such as payroll and monthly rent costs, from gross income.
Texas hemp lawyer Chelsie Spencer was recently interviewed by the Texas Cannabis Collective for its article “What You Need to Know about Hemp Legalization in Texas.” Texas Cannabis Collective is a Texas-based informational and educational media organization focusing on cannabis news in Texas and across the United States. In April of this year, Chelsie was interviewed on Texas’ hemp growth bill, HB 1325, prior to its passage by Texas Cannabis Collective. In the recent interview, Chelsie discusses the impact that HB 1325 will have here in Texas and practical problems she anticipates that may arise as the hemp-growth program begins implementation.
HB 1325 (or, “Bill”) is still pending in the Texas Legislature. The Bill will allow hemp growth in Texas for licensed hemp growers and will legalize hemp products, including CBD. HB 1325 will have an impact on manufacturers of hemp-derivative products in Texas and on hemp products in Texas. Today, we review what this impact will be and take a closer look at some of the pertinent provisions of the Bill.
What is one of the biggest problems facing cannabis businesses today? What to do with the money. Currently, most banks are reluctant to service cannabis businesses as such activity could threaten the bank’s charter since marijuana remains a Schedule I substance federally. Cannabis banking is certainly a risk for a chartered bank. Cannabis businesses cannot generally use credit cards or electronic funds transfers. Cash, which is fraught with risks, is sometimes the only way to operate.