Marijuana Business Magazine November-December 2019

Arkansas Sales of medical cannabis in the state totaled $12.35 million in the first five months of the program. The sales, representing 1,730 pounds of marijuana, were achieved with only a fraction of the licensed dispensaries in operation. Arkansas issued 32 dispensary licenses, but only 10 are in operation, according to Scott Hardin, spokesman for the Arkansas Alcohol and Beverage Control, which is responsible for licensing. Dispensaries in the state initially sold only dry flower. Now, several products are available, and edibles have become a significant por- tion of the overall sales, Hardin said. California Gov. Gavin Newsom signed Assembly Bill 37, which will allow some California cannabis businesses to deduct expenses on state income tax returns starting next year. The bill will allow deductions for marijuana businesses filing as sole proprietors or partnerships, although many California marijuana businesses are set up as limited liability companies (LLCs) or corporations and won’t benefit from the new legislation. MJ businesses are still barred from taking federal tax deductions under Section 280E of the IRS tax code. Industry Developments | International & State