Weed Shops Have a Cash Problem. Can States Make It Easier?
Wads of cash. That’s how owners of recreational marijuana businesses haul in their taxes, because big banks are reluctant to work with the industry while marijuana is still illegal under federal law. U.S. states may pull in as much as $1.6 billion in taxes from recreational marijuana sales this year—that’s not including medical marijuana—so that’s a lot of wrinkled bills from the register. A number of states and cities have stepped up with ideas to make payment safer and more efficient. Nevada is developing a pilot digital currency system for paying taxes. Ohio already allows bitcoin tax payments by businesses. Washington state tax payments can be made through state-chartered banks and credit unions. An Arizona startup is testing an approach involving armored cars and blockchain-based tokens. And there’s more. Bloomberg Tax reporter Brenna Goth looked into these and other ways states are tackling the problem. She spoke with Talking Tax host Amanda Iacone. Listen and subscribe to Talking Tax from your mobile device: Via Apple Podcasts | Via Stitcher | Via Overcast | Via Spotify