Update: Industry tax relief vetoed

Update 7/9/2021, 12:14 p.m.: On July 9, Governor Parson vetoed SB226, the bill containing language that would allow Missouri’s legal marijuana businesses to deduct expenses disallowed from their federal returns. 

SB226, the Senate bill which was passed in May prior to the end of session, was vetoed by the Governor. The bill contains amended text introduced by Sen. Andrew Koenig, R-Manchester, that would allow Missouri’s legal marijuana businesses to deduct the expenses disallowed from their federal returns, bringing them in line with other businesses operating in the state. 

While this makes the bill incredibly significant for Missouri’s medical marijuana businesses. Even without relief from federal taxes, this change would mean a difference of hundreds of thousands of dollars for operators in the state. 

In an email sent to members earlier this week, MoCannTrade wrote, “We are hearing that Governor Parson is considering vetoing Senate Bill 226 due to property tax language unrelated to our 280e expenses language also in the bill. This often happens to omnibus bills at the end of legislative session when legislators are loading bills up with their amendments.”

   

Greenway contacted the Governor’s Office for insight or additional information regarding a possible veto. The office replied with only the following statement, “On Friday, July 9, Governor Parson will issue several vetoes, veto letters will be posted here by 12:00 p.m.” (Emphasis from original.)

The directly applicable section of text for Missouri marijuana businesses as amended to SB226 follows:

(12) For taxpayers authorized to conduct business under Article XIV of the Constitution of Missouri, the amount that would have been deducted from the computation of the taxpayer’s federal taxable income if such a deduction were not disallowed under 26 U.S.C. Section 280E, as in effect on January 1, 2021, because of the status of marijuana as a controlled substance under federal law.

Full text of the bill: http://www.senate.mo.gov/21info/pdf-bill/tat/SB226.pdf