PERSONAL LIABILITY FOR UNPAID MARIJUANA EXCISE TAXES

Friends,

The COVID-19 pandemic has led to serious government cutbacks at the state and local level due to a reduction in economic activity. Since states began instituting legalization regimes, this has led to a high tax burden on the industry. Given the recent rise of marijuana sales since March, businesses should assume that governments will be looking at every possible angle to ensure that licensees pay their taxes timely and in full.

An important way to ensure payment of excise taxes is that owners, officers, and managers of a licensee may be personally liable for the failure to pay taxes for those “who willfully fail to collect, account for, or pay over such tax or who willfully attempt in any manner to evade or defeat any such tax, or the payment thereof.” Personal liability includes a penalty equal to 150% of the unpaid tax.

McAllister Garfield has abundant experience in assisting licensees in dealing with audits by local and state governments, including appealing tax assessments by the Department of Revenue. We can also help officers and managers in resolving any concerns about personal liability where taxes are unpaid.

Please contact Sean McAllister at sean@mcallistergarfield.com or 720-722-0048 if you need assistance with resolving marijuana excise tax issues.