Volume 1, Issue 12
The Newsletter’s Aim
Weeding the News – a breakdown of the month’s cannabis news, important events, and top-notch accounting tips – aims to entertain and inform you as we watch the cannabis industry transform before us.
The information contained in Weeding the News issues is provided for informational purposes only and should not be construed as tax or legal advice.
Hot Off the Press
Posted 5/5/25 at 5:57 PM PDT.
Legislative Update: AB 564 Advances in California’s Cannabis Industry
AB 564 recently passed the California Assembly Tax & Revenue Committee, marking a key step toward preventing the scheduled excise tax increase from 15% to 19% on July 1, 2025. Authored by Assemblymember Matt Haney, the bill aims to ease the tax burden threatening many cannabis businesses statewide.
Next steps include a full Assembly vote, Senate committee review, and, if approved, the Governor’s signature. Without an urgency clause, the bill would take effect January 1, 2026.
This legislation could stabilize the market by reducing tax pressures that have forced many operators out of business. Investors, CxOs, and compliance professionals should monitor AB 564 closely, as it may significantly impact California’s cannabis tax and regulatory landscape.
Special thanks to Assemblymember Haney, Kristin Heidelbach of UFCW Western States Council, and all advocates supporting this effort.
© 2025 BTA Corp. All rights reserved.
AAPI Heritage Month & the Cannabis Industry: Honoring Roots, Shaping the Future
May marks Asian American and Pacific Islander (AAPI) Heritage Month, a time to recognize the diverse cultures, contributions, and resilience of AAPI communities across the United States. From early immigrants who helped build America’s railroads and agricultural backbone to modern leaders in medicine, technology, and entrepreneurship, the AAPI legacy is woven into the fabric of American progress.
In the cannabis industry, AAPI representation continues to grow—though not without challenges. Historically underrepresented due to cultural stigma, immigration barriers, and criminalization, AAPI entrepreneurs, researchers, and advocates are now helping redefine cannabis in business, science, and policy. From cannabinoid research to retail ownership and social equity advocacy, AAPI voices are vital to an inclusive and global cannabis future.
© 2025 BTA Corp. All rights reserved. AI-generated.
What’s on the Docket
A new bill in Congress would remove restrictions preventing the White House’s drug policy office from supporting or sponsoring cannabis research. Congress is considering bipartisan bills that would mandate the automatic sealing of certain non-violent federal cannabis convictions.
A Florida House panel has unanimously approved a bill that would provide free medical marijuana cards for military veterans. Texas police are looking for a man who put a new spin on the traditional Easter egg hunt. In honor of AAPI Heritage Month, we hear from a distinguished industry insider on Asia’s role in cannabis.
Special Announcement
We are proud to announce that BTA Cannabis CPA Tax, a practice area of the Andersen CPA Firm, has entered an Official Brand Partnership with Fat Nugs Magazine. We have been long-time fans of what Dustin Hoxworth and company have been doing, and we look forward to collaborating more closely. Stay tuned for more developments.
Cannabis in Los Angeles and Beyond
Los Angeles’ Department of Cannabis Regulation announced that the 2025 Phase 3 Retail Round 3 Application Lottery for Social Equity Individual Applicants (SEIAs) will occur in early December 2025. Registration is open from September 9 to September 16, 2025. Read more on the Los Angeles Department of Cannabis Regulation.
Three LA dispensaries—3C Cannabis, Benzeen, and Rebud—are redefining retail with themed shopping, blockchain loyalty programs, and local events. Read more on EIN PressWire.
Hawaiian advocates of HB 302, a medical cannabis expansion bill, are withdrawing their support after a conference committee added restrictive changes, such as limiting approved conditions by a “primary treating medical provider.” Read more on Marijuana Moment.
© 2025 BTA Corp. All rights reserved.
Noa Botanicals has opened its fourth medical marijuana dispensary in Waikiki. This expansion builds on its existing locations in Honolulu, Kāneʻohe, and ʻAiea. Read more on BizJournals.
Louisiana lawmakers are eyeing a bill (HB627) that would create a recreational cannabis pilot program. State Representative Candace Newell says she’s “looking at another revenue source” in her state. Read more on KLFY.
Oklahoma Governor Kevin Stitt has called for a cross-agency effort to protect his constituents from psychoactive marijuana byproducts, calling them a threat to the public’s health and safety. Read more on the Marijuana Herald.
Florida bill HB 555, which makes medical marijuana cards free for military veterans, has been unanimously approved by the Florida House of Representatives. Read more on Marijuana Moment.
© 2025 BTA Corp. All rights reserved.
Trulieve, Florida’s largest medical cannabis company, contributed $19.6 million in early 2025 to the Smart & Safe Florida committee, aiming to place a revised recreational marijuana amendment on the 2026 ballot. Read more on WUSF.
Pennsylvania’s push to legalize recreational cannabis is gaining bipartisan momentum as lawmakers proposed a bill to privatize dispensaries to win GOP votes, aiming to close a budget gap and recapture tax revenue. Read more on Axios
Maryland cannabis sales last month came in at $98 million, for a total of over $280 million since January. Read more on the Marijuana Herald.
New York’s legal cannabis market has surpassed $1 billion in sales within its first two years, with over 260 dispensaries now operating statewide. Prices are dropping, competition is intensifying, and projections suggest sales could reach $1.5 billion in 2025. Read more on Spectrum News.
Two House representatives have introduced the Evidence-Based Drug Policy Act of 2025, which would grant the White House Office of National Drug Control Policy (ONDCP) the ability to finance and possibly sponsor research related to medical and adult-use cannabis. Read more on Cannabis Business Times.
© 2025 BTA Corp. All rights reserved. AI-generated.
Another set of bills, the Clean Slate Act and the Fresh Start Act, have been put forward in Congress to seal specific non-violent federal marijuana offenses, as well as helping states remove records for comparable convictions. Read more on Marijuana Moment.
It’s estimated that legal cannabis sales could surpass $123 billion this year, an increase of about 9% from 2024. Read more on MjBizDaily.
© 2025 BTA Corp. All rights reserved.
Abroad
Cannara Biotech achieved record Q2 2025 results with $36.8 million in gross revenue and $26.6 million in net revenue, marking its strongest quarter to date. The company attributes this growth to increased cannabis sales and expanded market share across Canada. Read more on StratCann.
The Cannabis Council of Canada is urging Prime Minister Mark Carney’s minority Liberal government to pass policy changes supporting the country’s struggling legal cannabis industry. Read more on MjBizDaily.
Israel plans a 165% tariff on Canadian cannabis, sparking concern among patients and stakeholders. Aimed at curbing product dumping, the tariff may hinder access to medical cannabis and disrupt the market. Read more on Business of Cannabis.
Slovenian lawmakers have introduced legislation that would legalize cannabis for medical and scientific use. Read more on Leafie.
Tax Strategy: Using IRC §471(c) to Offset the Pain of IRC §280E
Cannabis operators know the sting of IRC §280E—a provision that denies deductions for most business expenses due to cannabis’s Schedule I classification. The result? Effective federal tax rates often soar past 70%.
But there’s a strategic workaround that can soften the blow: IRC §471(c).
What is IRC §471(c)?
Enacted under the 2017 Tax Cuts and Jobs Act, §471(c) allows small businesses (with under $29 million in average gross receipts) to adopt nontraditional inventory accounting methods—as long as they align with their financial reporting.
This opens the door to legitimately increase COGS.
How It Helps Cannabis Businesses
Under a §471(c) method, cannabis businesses may: reclassify inventory related payments to COGS. Examples are:
- Rent and utilities
- Inventory-related wages
- Depreciation and amortization
- Other direct costs
Key Considerations
- This strategy does not eliminate §280E—it mitigates its impact
- Requires a documented accounting procedures which is consistent with the financial reporting for the company
- IRS scrutiny is increasing—conservative, consistent application is critical
- Not suitable for all cannabis businesses—consult your cannabis CPA before attempting to implement.
Bottom Line
If you’re eligible under §471(c), this tax strategy may significantly improve your federal tax posture. With the proper guidance and implementation, it can be a powerful lever to legally reduce your tax burden.
Disclaimer: This is not a simple tax strategy. Seek advice from a tax professional before implementing.
© 2025 BTA Corp. All rights reserved.
Upcoming Events
Events Abroad
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The Situation Report
Texas police are searching for a man who allegedly threw a scavenger hunt of cannabis-filled Easter eggs throughout Lufkin, a city in East Texas. Read more on the Austin American-Statesman.
Two students in Vermont have been arrested for allegedly stealing $30,000 in property, or 15 pounds of cannabis, from a cultivation farm. The pair was caught on a neighbor’s game camera making their way to the farm. Read more on WCAX.
Jacinto Correa Cruz, 56, was sentenced to five years in federal prison for his role in a large-scale illegal cannabis cultivation operation in California’s Los Padres National Forest. The operation caused significant environmental damage. Read more on the US DOJ website.
A group of Alabama parents is suing the state for what they say is a delay in the state’s medical cannabis registry, as the state’s medical cannabis law was passed four years ago. Read more on ABC3340.
In Colorado, the six leaders of a Denver gang have been sentenced for a series of dispensary robberies. Several of the criminals posted pictures on social media brandishing guns and wads of cash they stole, sometimes in the same outfits they wore to the burglaries. Read more on CBS News.
© 2025 BTA Corp. All rights reserved.
Abroad
Hong Kong Police have arrested nearly 100 people in a citywide drug trafficking clampdown; among the arrests was a 13-year-old. Read more on SCMP.
Police in the Avon and Somerset region of the U.K. have been advised to stop using the smell of cannabis as a pretext for stop and search. Read more on Leafie.
Takuya Aiuchi, founder of CBD Library and Kyoto Asanoha, is a leading figure in Japan’s hemp and medical cannabis space. As the founder of CBD Library — one of Japan’s largest CBD resources and cannabinoid education platforms—he is dedicated to demystifying hemp-derived wellness products and advocating for responsible access.
Through articles, product curation, and global advocacy, Aiuchi promotes awareness of cannabinoids’ therapeutic potential and Japan’s role in shaping cannabis policy in Asia. When asked about the Japanese CBD market, he had this to share:
“Japan’s CBD market has entered a pivotal phase in 2024, with new THC residue limits introduced:
• Oils & powders: 10 ppm (0.001%)
• Aqueous solutions: 0.1 ppm (0.00001%)
• Others: 1 ppm (0.0001%)While some brands may exit due to these strict rules, clearer standards could build real consumer trust and push the industry forward. Japan’s reputation for quality in food and cosmetics may eventually give ‘Made in Japan’ CBD products a competitive edge in Asia. Turning regulation into strength — that’s our mission.”
© 2025 BTA Corp. All rights reserved.
Jobs
Job Title: General Manager
Location: Lowell, MA
Salary: $60,000 – $85,000
The Cannabist Company is one of the largest, fully integrated operators in the U.S., operating in 16 markets across the country.
Requirements:
Not specified.
Ideal candidates will have 5+ years of experience with 1-2 years of cannabis experience.
Benefits: Medical, dental, vision, PTO plans, and a 401K with a company match for all full-time employees.
Job Title: Operations Manager
Location: Warwick, RI
Salary: Not provided.
Green Thumb Industries Inc. is a national cannabis consumer packaged goods company and retailer, promoting well-being through the power of cannabis while giving back to the communities in which it serves.
Requirements:
- Bachelor’s Degree in Engineering or Business required
- 5+ years of management experience in a manufacturing environment; direct management of 30+ individuals in a manufacturing setting required.
- Have a solid understanding of the Medical Marijuana laws, rules, and regulations set forth by the state; a pursuit to further their understanding and knowledge of the industry and the laws
- Must pass any and all required background checks
Ideal candidates will possess high levels of critical thinking and have exemplary communication and interpersonal skills.
Job Title: Head Grower (Senior Manager, Cultivation)
Location: Lakeville, MA
Salary: Not provided.
Jushi Holdings, Inc. strives to be a world-class leader in cannabis and hemp. Their mission is to create an integrated global community of wellness, mindfulness, and connections through superior quality.
Requirements:
- 5+ years of commercial cannabis cultivation experience, including leadership roles.
- Strong understanding of plant science, integrated pest management, fertigation systems, and environmental controls.
- Strong understanding of plant science, integrated pest management, fertigation systems, and environmental controls.
- Familiarity with state cannabis regulations, seed-to-sale tracking systems, and compliance standards.
Ideal candidates will have a degree in horticulture, plant science, agronomy, or a related field and excellent organizational, problem-solving, and communication skills.
Benefits: May include medical, dental, vision, life, short- and long-term disability, flexible spending accounts, paid time off, paid holidays, and 401(k).
© 2025 BTA Corp. All rights reserved.
Non-FAQs
Instead of answering questions that have been asked all the time, we offer a few questions that should be asked. If asked, the questions would save you a lot of time and trouble. Trust us.
