Springtime Hopes Die Under The Summer Sun
280E, Cannabis Banking Reform Will Not Be Voted On By This Congress
By Jim Marty, CPA and Chief Executive Officer of Bridge West LLC
Another 100 degree day in Denver and I hop in my car to attend a roundtable of prominent CPAs, attorneys, and politicians hosted by Colorado Republican Congressman Ken Buck and House Ways and Means Committee Chairman, Kevin Brady. Congressman Brady heads the top tax writing panel in the House of Representatives.
I last met with Congressman Buck, who represents my House District in Northern Colorado, in his office in the U.S. Capital this past May. We discussed The Strengthening the “Tenth Amendment Through Entrusting States Act” that Senators Gardner and Elizabeth Warren were co-sponsoring in the Senate. Congressman Buck was introducing the companion legislation in the House.
The States Act would simultaneously allow banking for cannabis businesses and exempt them from IRS section 280E, thus granting them the right to deduct normal business expenses. It would not legalize marijuana at the Federal level, but it would recognize the rights of the state to regulate cannabis as they see fit. In May, we were hopeful this legislation would make it out of committee for a vote on the floor of Congress. President Trump indicated he would consider signing the legislation if it made it to his desk.
No such luck. Congressman Buck informed the roundtable the States Rights Act would not get out of committee in the House or Senate before the mid-term elections this November. However, he and Senator Gardner plan to reintroduce the bill when the new Congress convenes in January of next year.
I thanked Congressman Buck for his efforts in front of the roundtable of about 40 people, including the Mayors of Castlerock and Lonetree, by presenting him with a marijuana leaf lapel pin similar to the one I wear every day. He was a little embarrassed, but I told him I would be proud of him if he wore it on the floor of the House of Representatives.
Maybe the cannabis industry will have better luck in the next congress as several anti-cannabis committee chairs are retiring.
“In the heat of the sun a man died of cold” Robert Hunter, New Speedway Boogie 1969