Cannabis plays a big part of my life. Because I want a career in the industry. This plant has helped me in countless ways. As a result, I make it my mission to educate others on the subject.
this post is about Taxes. It is a popular conversation piece right now with current events. The GOP is about to pass a controversial bill that doesn’t please everyone. Since it’s a popular subject, I would like to utilize the SEO opportunity to talk about green taxes.
Technically, In this article when I say Green Tax I am referring to 1937’s Marijuana Tax Act. Decided to call this post the green tax because I don’t want people to confuse Hemp and Marijuana. Because one is legal in Tennessee and the other isn’t. However These taxes apply to both plants.
This bill is important because it doesn’t criminalize marijuana or Hemp while making the Government money. It could also be used as a bargaining chip to make the Prision system sway towards the pro cannabis side.
The Green Tax passed was basically passed in 1937 because of a movie called Reefer Madness’. Unfortunately I am not talking about the cult classic of the same name starring Alan Cunning and Kristen Bell. That movie is actually a spoof of the 1936 propaganda film that may anyone who used cannabis as raving sex-obsessed dangers to society. The film did it’s job and as a result the green Tax was passed
The Green Tax was very detailed in making sure people thought it was too risky to have a cannabis business. Every element of the process was documented and the Government profited whether you kept it open or they shut it down.
Since this was around the time of prohibition plus racist proganda was being used to sway people from using products made from cannabis, people didn’t want to put up as a big of a fight. Because the bill is strict when it comes to the taxation of this wonderful green plant family. And If you violated any of the laws, it resulted in a $2000 fine and up to 5 years in jail. ( aka The bargaining chip.)
There was a special IRS fee for selling cannabis, and a transfer fee for moving cannabis product. The Government also had to know who you were selling product to. Think about it, a 1937 cannabis shop owner have to pay $2000 or go to jail for not getting all their buyer’s information Or the buyer claiming he didn’t get a form that the shop owner was suppose to print out in triplicate. So they didn’t criminalize it but they made it very hard to keep a cannabis shop open.
Flash forward to today. And currently Tennessee doesn’t Tax hemp. However I put taxes on my store, because I want to be on the right side of the law. I file my taxes every year and I want to include what I made on the product sell because then I’m Legit in the governemnt’s eyes. And yes this is naïve thinking. But I’m thinking ahead.