In June of 2018, Oklahoman's are set to vote on State Question 788. This ballot initiative is set to legalize medical marijuana in the state. This is a huge move for the state, as there are already 29 states that currently have laws in place legalizing the use and sale of medical marijuana.
With this upcoming vote, many people have questions related to taxes and the business of marijuana. If you are one of the many, learn more here:
Can You Claim Medical Marijuana Expenses on Your Yearly Taxes?
Medical marijuana is still considered illegal on a federal level. This means the ability to claim it as a deduction, along with related marijuana expenses is still impossible. However, on a state level, this isn't as black and white. While it may be possible to claim marijuana expenses on your taxes at the state level, it may not be worth the hassle. The best way to know for sure is to hire an accountant to help.
What if Oklahoma has a High Tax on Marijuana?
Currently, if the law is approved in Oklahoma, the marijuana sales tax will be established at a rate of 7 percent of the gross amount that is received by the seller. This is not considered high and isn't enough to cover the administrative and social services costs, as some states have traditional tax rates that are higher than this on various products, not just marijuana.
Sales, Excise, and Wholesale Taxes
The sales tax mentioned above will be put in place, with the excise and wholesale taxes to be determined if the law is put into effect. If the state follows predecessors, such as Colorado and Washington, excise tax may be around 37 percent. However, this is yet to be seen, as the law hasn't officially been passed.
How to Handle Taxes on Marijuana Expenses
Due to the complexity of the tax issues related to medical marijuana tax issues, it's best to work with a professional accountant to ensure everything is handled properly. Failure to take the right steps can lead to several issues and isn't something you should be willing to deal with, as the penalties can be steep.
Finding the right accountant is the best way to ensure that you handle everything properly. Keep in mind, not all accountants will be qualified to handle these issues, as the law is new, and the tax related concerns have only recently been put in place. Being informed and having professional assistance is the best way to ensure the highest quality results are achieved. Surround yourself with trusted and reliable professionals who can assist you with this development as well as staying compliant. Call Travis W. Watkins Tax Resolution and Accounting Firm for your Free consultation at 800-721-7054.
You may also be interested in our other article-> Preparing For Tax Collection For CBD Dispensaries In Oklahoma
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