Michigan Court Says: Medical Pot Shops Can't Claim Tax Breaks

Michigan's medical marijuana dispensaries face a tough situation. They can't claim tax deductions like their recreational counterparts. This is because of a recent court decision. The Michigan Court of Appeals ruled against Cannarbor Inc. The company tried to deduct business expenses from its state taxes. But the court said no. It agreed with the state's decision to deny these deductions. Cannarbor Inc. argued that this is unfair. They said treating medical and recreational marijuana businesses differently is unconstitutional. But the court didn't agree. It said the voter-approved law legalizing recreational marijuana created these tax breaks. Medical marijuana wasn't part of that deal.This ruling affects medical marijuana businesses in Michigan. They can't deduct ordinary business expenses from their state taxes. This puts them at a disadvantage compared to recreational pot shops. The court's decision is clear. Medical marijuana dispensaries must pay more taxes. This is because they can't claim the same deductions as recreational pot sellers. It's a tough break for these businesses.