Curaleaf Holdings Inc. is talking to law firms and accounting experts about what would happen if it were to rebel against a U.S. tax it says is unfair, according to its chairman, Boris Jordan.
The industry is fed up with a lack of regulatory change, Jordan said, and there are talks of protesting a key piece of tax law that prevents marijuana companies from deducting expenses like other companies do.
"If the whole industry stops paying it, what will the federal government do, step in and shut things down?" he said in a phone interview following Curaleaf's release of earnings.
He was referring to 280E, which applies to companies that handle federally illegal substances.
"We think it's unfair, it's unconstitutional and we don't get anything back from the taxes we pay," Jordan said, estimating that seven other companies in the sector are considering such a move. If the drug gets
Curaleaf is the largest U.S. multistate cannabis company by market capitalization and reported revenue of more than $1.3 billion in 2023. Trulieve, another multi-state seller, has already challenged the law, saying in its recent fourth-quarter report that it filed amended tax returns based on its own legal interpretation of tax law.
