Normal Taxes for Marijuana Growers? Think Again
The debate on whether marijuana cultivation should be considered a commercial activity or an agricultural undertaking rages on. But why should you care? Because the answer will significantly impact the federal taxes of anyone who grows and sells marijuana. Washington and Colorado have already decided how to tax marijuana at the retail level, but both are still trying to figure out how to tax marijuana production. The AP tells us that some lawmakers in both states say marijuana growers should not be eligible for the tax breaks given to farmers who grow "conventional" crops. Other lawmakers say that marijuana, while it is growing, should be treated just like hops and barley that go on to become highly taxed alcohol.