LivWell Enlightened Health Announces Record-Breaking 4/20 Sales
(PRWEB) April 27, 2016 -- LivWell Enlightened Health, Colorado’s leading cannabis company, announced record-breaking 4/20 sales, serving nearly 5,000 customers across all 14 of its locations on Wednesday, alone.
LivWell experienced the highest single-day sales in the history of the company, beating its second best day, the September 2015 pot tax “holiday,” by eight percent. This year’s 4/20 sales also doubled sales for an average Wednesday in April. Because LivWell is compliant with Section 280E of the federal tax code, the majority of the profits for these sales, as well as all LivWell sales, will be paid in federal and Colorado income taxes.
Federal Internal Revenue Service (IRS) Code Section 280E forbids businesses from deducting otherwise ordinary business expenses from gross income associated with the sale of Schedule I or II substances, as defined by the Controlled Substances Act. The IRS has applied 280E to state-legal cannabis businesses, because cannabis is still classified federally as a Schedule I substance.
“Most legal cannabis companies experience an effective tax rate of between 70 and 90 percent – or higher in some cases - because we are unable to deduct everyday business expenses,” said John Lord, LivWell Enlightened Health’s owner and CEO.
“We abide by the strict compliance regulations, and record breaking sales become less impactful when the majority of proceeds must be used to pay excessive taxes.”
Non-deductible business expenses include employee salaries, property leases, costs for utilities such as electricity, internet and telephone services, employee health insurance premiums, marketing and advertising costs, and repairs and maintenance, among others.
“There is a continued misconception that the marijuana industry breeds instant riches,” said Lord. “But it is heavily regulated and taxed more than double other commercial businesses.”
LivWell’s 4/20 sales spike also benefitted The Fitch Foundation, an organization that helps veterans achieve active lifestyles through specialized sports. LivWell will donate $5,000 to the foundation in honor of the nearly 5,000 customers who shopped at the company’s locations on 4/20.
About LivWell
LivWell is among Colorado’s largest cannabis companies, with fourteen locations across the state. LivWell provides its patients and customers with the best value, quality and variety of cannabis products including flower, topicals, tinctures, edibles, smoking accessories and more. LivWell’s team of innovative farmers and scientists grow more than 40 strains of cannabis to meet the varied and evolving tastes of its customers. LivWell’s searchable strain library can be found at http://www.livwell.com/product-category/strains/. LivWell employees undergo rigorous training and education through LivWell University, preparing them to be the most knowledgeable, helpful budtenders in the industry, and to become advocates of responsible use. LivWell employs approximately 500 Coloradans who enjoy higher-than-average salaries and benefits. For more information, including a list of LivWell’s locations, visit http://www.livwell.com.
# # #
Melissa Christensen, Metzger Albee Public Relations, +1 970-342-0256, [email protected]
Share this article