Resolution Opposing the Continued Use of the Internal Revenue Code Against Medical and Adult Use Marijuana Dispensaries and Providers

RESOLUTION 16-06.37L


Resolution Opposing the Continued Use of the Internal Revenue Code Against Medical and Adult Use Marijuana Dispensaries and Providers

WHEREAS California, 28 states and the District of Columbia have legalized the use of marijuana medicinally and eight states and the District of Columbia have legalized the adult-use of marijuana,

WHEREAS sections of the Internal Revenue Code have been enacted to prevent drug traffickers from being able to claim business expenses related to illicit dealings on their federal tax returns, and

WHEREAS the Internal Revenue Service is applying rules that apply to businesses providing medical and adult-use marijuana permitted under state law, thereby disallowing the deduction of normal business expenses resulting in ruinous and unfair tax bills, resulting in businesses and individuals associated with marijuana distribution, as permitted by state law, held liable for unpaid taxes, resulting in bankruptcy and undue hardship, now

THEREFORE BE IT RESOLVED that the California Democratic Party requests the President of the United States of America to direct the Internal Revenue Service to suspend enforcement of sections of the Internal Revenue Code against businesses and individuals furnishing medical-use marijuana and adult-use marijuana, as permitted by state law, in the same manner that President Obama directed the Department of Justice to suspend criminal prosecutions against businesses and individuals that furnish marijuana as permitted by state law, and now

THEREFORE BE IT FURTHER RESOLVED that the California Democratic Party requests that the United States Congress exempt licensed medical marijuana and adult use facilities from Internal Revenue Code sections in jurisdictions where medical and adult-use marijuana is legal under state law.

Sponsored by Brownie Mary Democrats of California

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Adopted by the California Democratic Party
At its 2016 Winter Executive Board Meeting
Hyatt Regency Mission Bay

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