CPA Practice Advisor

SEP 2015

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16 September 2015 • www.CPAPracticeAdvisor.com A YEAR IN THE LIFE: SALT ACCOUNTANT Consider this. Today, 23 states and the District of Columbia allow medical marijuana use. Currently, Washington, D.C. and four states – A l a s k a , C o l o r a d o , O r e g o n a nd Washington – legalize it recreation- ally … and that seems to be just the beginning. As you can see by this chart put t o g e t h e r b y Po l i c y. M i c f r o m a CNN/ORS survey poll, marijuana is being supported now more than ever. Proponents are pushing ballot initiatives in the near future (as of this writing) in A rizona, California, Maine, Massachusets, Minnesota and Nevada, and legislative eforts a r e a l i v e i n D e l a w a r e , H a w a i i , Maryland, New Hampshire, R hode I s l a n d , Te x a s a n d V e r m o n t , accord ing to Joseph Hench man's article at the Ta x Foundation. Te a r t ic le went on to st ate t hat Joe Bren z y, of t he Nevada Ca n nabis Industr y A ssociation, believes 25 states will have legal retail marijuana sales within fve years. He supports his claim by stating that proponents have the resources to bypass legisla- tors and go straight to the votes. Te reality is that if you work in t hese states, you may l i kely have clients in this business, sooner or later. Here are some statistics: • Legal Marijuana is the fastest-growing b u s i n e s s i n t h e Un i ted St ate s , expecting to generate $10.8 billion in sales in 2019, a huge increase from $2.7 billion seen in 2014. (Source: ArcView Market Research). • Colorado's legal marijuana market reached $203 million during the frst four months of 2014 (Source: Busi- ness Valuation Resources). • According to the same study, big players are making their mark and conducting a commercial, profession- ally run operation, with warehouses of up to 50,000 to 60,000 square feet of plants, with 50 or more employees watering the plants and giving them nutrients. • Te estimated annual revenue Cali - fornia would raise if it taxed and regulated the sale of marijuana is $1.4 billion (Source: Drug Policy Alli- ance). • If Cannabis is legalized at the Federal level by 2020, revenues could reach $35 billion, more than three times that of the National Football League (Source: Greenwave Advisors report). It's i mpor ta nt to note t hat t he treatment of medical marijuana and legal marijuana varies by state. For an overview of Washington, D.C. and the four states that legalize mari- juana, take a look at the following: Washington, D.C. According to Initiative 71, adults age s 21 a nd older c a n h ave t wo ounces or less of marijuana on them; s h a r e o n e o u n c e o r l e s s w i t h someone at least 21 years old so long a s t here a re no money, good s or ser v ices changing hands; grow as many as si x marijuana plants, but have no more t ha n t h ree mat u re plants, in their primary home; and u s e m a r i j u a n a o n t he i r pr i v a t e property. A lso, under the law, residents of Washington, D.C. are not allowed to smoke or consume marijuana in public space, including restaurants, bars, cof fee shops or any Federa l p r o p e r t y. I n a d d i t i o n , p u b l i c housing tenants cannot smoke it in their homes because the units are government owned. However, Congress stepped in, making it illegal to sell or tax mari- juana in public. For now, it can only be grow n or consumed in private homes, following the Initiative 71 laws. Alaska If you are 21 or older, you can legally have up to an ounce of marijuana on you, grow up to six marijuana plants in your home and keep any addi - t iona l ma r ijua na produced f rom A Cannabis Niche for Accountants? Working With Businesses that Grow and Sell Marijuana By Webb Stevens F or older, and even younger, CPAs and accountants, taking on clients who grow and/or sell marijuana (Cannabis) may seem like the very last niche industry you would have considered for your practice. Yet, no mater how you personally feel on the subject, the reality is that legal Cannabis is becoming a booming business, ripe with opportunities for an accounting practice to work and consult with businesses in the marketplace on a full range of tax, sales tax, accounting, audit and workfow issues. t D . C n s u m c l u d i n g r o p s o r a n y d d i t i o n , p a n n o t o k e u s e t h e t s a r H s s s t e p p e n , k i n g i t i l l e g a l o r t a x m a i - i n p u b l F r n o w , t a n o n l n o r c o n s u m d i n p r i v a t e o w i n g t h e I n v e 1 a n l e g a l l y n c e o f m a r i j u a o n w u p t o s i x m a r i j u a n p l a n t k a n y d s u l u d i n g o p s o r a d d i t i o n , p a n n o t s m o k e u s e t h e u n i t s a s s t e p p e d i n , k i n g i t l l o r t a x m a r i - u b l i c . F o r n o t c a n o n l y n o r c o n d i v a t e o w i n v e 7 1 n s u m e d i n p r i n g t h e I n i t i a t i v n s y d d e h s a k g i e g n p u b r i n e g l y e o f m a r i j u a n a o n u p t o s i x m a r i j u a n a p l a n t s a y d o p t

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