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Medical pot industry faces big tax bill

Mina Kim
 — Oct 6 2011 - 9:30am

The Bay Area's budding medical pot industry is facing a big tax bill. The IRS has ruled Oakland's largest dispensary can not deduct business expenses.

In a letter last week, the IRS told Harborside Health Center that it can not deduct standard expenses like rent, payroll and health insurance ... because it traffics drugs.

Harborside's executive director Steve DeAngelo said the dispensary now owes the federal government $2.5 million in back taxes and penalties.

“This is not an effort on the part of the IRS to tax us,” DeAngelo said. “This is an effort on the part of the IRS to tax us out of existence.”

Read the complete KQED story here.


 This two part plan is the only action the citizens of the US need to take to end federal marijuana prohibition:1) EVERYONE that sees these links sign up at both sites and weigh in on the debate- Propagate those two links and ensure that everyone that sees them go to both those sites. Too many people are blaming the President for enforcing the federal marijuana prohibition. Contact Congress (the LEGISLATIVE branch [that's the important one when it comes to law]) via the first link. Contact Obama (the EXECUTIVE branch [until Obama vetos a passed H.R. 2306 it's on Congress - but tell Obama anyway]) via the second link. It really is THAT easy. Participate in democracy!