FAYETTEVILLE, Ark. (KNWA) – A decision is nearing on the winning bidders for the first five medical marijuana cultivation centers in Arkansas.
Dispensaries are expected to begin selling the product this summer, but high taxes could make if difficult for the new businesses to operate.
Industry experts say tax code 280-E hits marijuana businesses with tax rates that can be double what other businesses pay.
But efforts to create an exemption have stalled in congress.
Members of the Arkansas Congressional Delegation are skeptical about the state’s medical marijuana program.
Rep. Bruce Westerman, R-Arkansas, said, “I took an oath to uphold the Constitution of the United States, and as long as it’s against the law in the federal government, I’m opposed to it.”
Rep. Steve Womack, R-Arkansas, said, “That said the people of Arkansas have voted for medical marijuana, and I think you need to be respectful of the state’s rights.”
But until there’s change, the tax law will continue to make business tough for those trying to turn one kind of green into another.