Friday, July 10, 2015 | 1:22 p.m.
CARSON CITY — The U.S. Ninth Circuit Court of Appeals ruled Thursday in a California case that medical marijuana dispensaries cannot deduct business expenses in calculating their federal income taxes.
The Internal Revenue Service has held that because the sale of marijuana is against federal law and, dispensaries cannot deduct business expenses.
Eric Nison, an officer in a company that has eight licenses for medical marijuana dispensaries in Nevada, says the ruling will cut into profits and make it more difficult to compete against black-market dealers.
Nison is director of the East Coast Cannabis Division of Terra Tech.
State Sen. Tick Segerblom, D-Las Vegas, the chief sponsor of Nevada’s medical marijuana law, said the ruling “makes it tougher” for dispensaries. Congress needs to change the law to allow deducting business expenses, he said.
A 2013 Nevada law allowed 40 dispensaries in Clark County, 10 in Washoe County, two in Carson City and one each in the remaining rural counties.
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