Executives Re-Enact Boston Tea Party in Protest of Cannabis Tax Rule

On Wednesday, executives from Massachusetts-based cannabis company MariMed dressed in colonial garb and boarded a ship in Boston Harbor to protest IRS rule 280E, which taxes regulated marijuana companies at significantly higher rates than other businesses. The demonstration mirrored the Boston Tea Party, with costumed protesters dumping boxes labeled “weed” into the harbor to draw attention to the unfair taxation.

The Impact of IRS Rule 280E

Section 280E of the Internal Revenue Code prohibits cannabis businesses from claiming most standard business deductions, treating them like illicit operations due to cannabis’s Schedule I status. This rule imposes heavy tax burdens, reducing profitability and hindering growth.

Calls for Policy Change

MariMed CEO Jon Levine emphasized the need to repeal 280E to support the legal cannabis industry and enhance accessibility for consumers and medical patients. Despite ongoing legislative efforts, comprehensive federal reform remains elusive, leaving cannabis businesses to navigate these financial challenges.

Challenges in Repealing 280E

Repealing 280E requires legislative action, which has not been specifically addressed in current bills. The potential rescheduling or descheduling of cannabis could render the rule obsolete, but such changes are not expected soon.

MariMed’s protest highlights the financial strain imposed by 280E and calls for federal policy changes to support the growth and sustainability of the legal cannabis industry.