Prepare now for your 2025 returns
High Times Accounting provides specialized cannabis accounting services tailored to State regulations,
ensuring financial accuracy, tax compliance, audit readiness, and structured reporting for cannabis businesses.
Cannabis businesses in State regulations operate in a highly regulated financial environment that requires structured accounting systems, accurate tax reporting, and ongoing compliance with CCC and DOR regulations.
Unlike traditional businesses, cannabis companies must manage excise tax, sales tax, federal tax limitations under 280e and 471c, inventory tracking, and financial reporting requirements simultaneously.
Excise Tax
State Sales Tax
Local Marijuana Tax
State regulations cannabis businesses pay a 10.75% excise tax, 6.25% state sales tax, and up to 3% local marijuana tax on retail sales. The total tax burden can exceed 20% of revenue.
Section 280e and 471c prevents cannabis businesses from deducting ordinary business expenses, limiting deductions to Cost of Goods Sold (COGS) only. This significantly increases the effective tax rate for dispensaries.
The Cannabis Control Commission (CCC) requires cannabis businesses to maintain accurate inventory tracking, sales monitoring, compliance reporting, and financial transparency through systems like METRC.
Yes. Monthly reconciliation is essential for maintaining accurate financial records, ensuring compliance with DOR requirements, and preparing for potential audits.
Cannabis taxes must be filed monthly with the Massachusetts Department of Revenue, including excise tax and sales tax reporting with supporting documentation.
