Gross McGinley Educates Attorneys on Medical Marijuana in PA
In early May, Gross McGinley hosted an educational seminar for its attorneys on the tax and business considerations of medical marijuana now legal in Pennsylvania. Attorney Jeremy M. Vaida of Stein Sperling in Rockville, Maryland was on-hand to discuss The Medical Marijuana Act passed in April and what it means for the Pennsylvania and Lehigh Valley economy. Mr. Vaida is an experienced tax attorney who served as a Deputy Attorney General for the State of New Jersey during the on-boarding of its medical marijuana program.
During the session, our attorneys learned about the types of key players, how Pennsylvania qualifies patients, and the requirements for medical professionals. Mr. Vaida spent the majority of his presentation on how businesses growing and processing/production licenses as well as retail (dispensary) licenses. The state law limits the medical marijuana market to an oligopoly, with only 25 growing/production licenses and 50 retail sale licenses. There is significant capital requirements and up-front fees to obtaining licenses which will cause significant barriers to entry.
Representatives from Gross McGinley’s Business Services group were on-hand to learn about important tax considerations for businesses looking to enter this market including tips on how businesses can structure their production/sales to limit tax burdens. Given that banks adhere to federal laws preventing them from being involved with medical marijuana businesses, our attorneys learned how businesses in other states handle their cash flow and use security and insurance companies to protect their assets.
The medical marijuana market will significantly impact the state’s economy. Given the Lehigh Valley’s land and warehouse space, our attorneys see it as a possible region where canna-businesses could be established. If you have questions about making an investment in this new market, call us today at 610-820-5450.
