[Congressional Record Volume 157, Number 73 (Wednesday, May 25, 2011)]
[Extensions of Remarks]
[Page E953]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             INTRODUCING THE SMALL BUSINESS TAX EQUITY ACT

                                  _____
                                 

                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                        Wednesday, May 25, 2011

  Mr. STARK. Mr. Speaker, I rise today with my colleagues Mr. Polis (D-
CO), Mr. Frank (D-MA), Mr. Rohrabacher (R-CA), and Mr. Paul (R-TX) to 
introduce the Small Business Tax Equity Act.
  Our tax code currently undercuts legal medical marijuana dispensaries 
by preventing them from taking the full range of deductions allowed for 
other small businesses. While unfair to these small business owners, 
the tax code also punishes the thousands of patients who rely on them 
for safe, legal, reliable access to medical marijuana as recommended by 
a doctor.
  The Small Business Tax Equity Act would create an exception to 
Internal Revenue Code Section 280E to allow businesses operating in 
accordance with state law to take tax deductions associated with the 
sale of medical marijuana. This legislation is one in a series of bills 
being introduced today that would help ensure the fair treatment of 
medical marijuana businesses and the patients they serve.
  Forty years after the start of the War on Drugs, 16 states and the 
District of Columbia now regulate and allow the sale of marijuana for 
medical purposes. Our tax laws have not kept pace with these changes in 
state law. My legislation would amend a portion of the Internal Revenue 
Code that was intended to prevent criminal drug dealers from claiming 
tax benefits. Under this bill, dispensaries operating legally under 
state law will no longer be prohibited from taking tax deductions and 
credits attributed to the sale of marijuana to patients.
   Medical marijuana dispensaries operate legally in my home state and 
pay federal, state, and local taxes. California now collects over $100 
million in state taxes annually from these small businesses. They 
should be able to claim the full range of benefits under the U.S. tax 
code just like other businesses that operate legally under state law. I 
urge my colleagues to join us in support of fair tax treatment for the 
medical marijuana industry and to ensure safe access to the patients it 
serves.

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