Kim Rivers picture Courtesy of Trulieve
In November, Hashish Enterprise Occasions sat down in Las Vegas with Trulieve CEO Kim Rivers to debate among the firm’s most vital endeavors in 2023 and prime priorities for 2024. On this dialog, Rivers explains the motivation behind Trulieve—one of many largest multistate hashish corporations within the nation—submitting an amended tax return and its effort to get better 280E cash paid to the IRS and which markets are most vital for the corporate in 2024.
Noelle Skodzinski: Are you able to speak in regards to the amended tax submitting and the technique behind claiming you don’t owe 280E taxes?
Kim Rivers: We filed in October amended tax returns for 2019, 2020 and 2021, and we needed to file by that date, or we’d’ve misplaced the power to say principally a refund for 2019. And so it was a straight refund declare. You’re simply principally saying, “We don’t consider that we owe you this cash. We made an error in our submitting, so please ship us again $143 million. Please and thanks.” [Laughs]
Simply to be clear, up till this level, now we have made all estimated tax funds, absolutely loaded, is how we’re characterizing it, with 280E and our common tax funds all through the second quarter of 2023.
Then when 2023 turns into due, we may have paid partial absolutely loaded funds for 2023, we’ll file that return and say, “Hey, by the best way, we’re not paying these final two quarters of estimated funds as a result of we don’t consider we owe you.” And so then this may actually hit in 2024, proper after we file that return, and we’ll be submitting that return saying, once more, we’re taking the place that we don’t owe 280E taxes.
So, finest case situation, the IRS says, “Oh my gosh, thanks for bringing this to our consideration. We agree with you. Listed here are checks, and we’re going to begin sending you cash.”
Second situation could be IRS says, “No, we disagree with you. We consider that you just owe it.” To which level we’d then roll out our authorized technique and take it to courtroom. At that time limit … all people will have the ability to see precisely the specifics by way of what’s behind the declare.
NS: So that you’re not sharing that rationale now?
KR: There’s no purpose for us to try this, and it will not be to our benefit from a positioning perspective—we don’t need to hurt our probabilities of success finally by doing that.
Michelle Simakis: Waiting for 2024, are there any markets you are feeling are most favorable to growth or that you just’re most enthusiastic about?
KR: I believe for us, we’re very, very, very centered on Florida after which Pennsylvania. When you take a look at these two markets mixed for us, now we have 150 shops that we have to flip [to adult-use if a bill or ballot initiative passes], which isn’t nothin’ as we sit right here at the moment.
I imply, I believe once you take a look at different medical applications which have transitioned into grownup use, I believe that probably the most anybody had of their portfolio on the time was lower than 20.
I’m a giant Florida State Seminoles fan. We have now the ball on the 10, and also you need the landing. You don’t need to need to accept the additional factors, and also you dang certain don’t need to fumble the ball. Proper? What causes fumbles lots of occasions is you’re fascinated with the subsequent play. You’re not centered on the down that’s at hand, and now we have to concentrate on the down that’s at hand.
MS: How are you getting ready for the potential of adult-use growth?
KR: We have to optimize and guarantee that our retail platform is in the most effective posture that it may be to service the client within the present atmosphere, however then after all, in an elevated demand atmosphere, as effectively.
We’re about to launch a brand new web site. We’re about to launch a brand new loyalty program. We’re taking a look at our tech inventory and our communications channels to shoppers. … Ensuring that our methods can deal with that at a special stage of scale. After which all the best way again by way of our demand planning and the way is our forecasting mannequin going to alter. It’s a soup to nuts effort that has already kicked off.
And once more, by the best way, that advantages our enterprise no matter what occurs with grownup use. And it advantages our enterprise, not simply in Florida, however throughout the nation. Discovering these alternatives the place we are able to make investments and we are able to lean in in a “regardless” state of affairs is one thing that we proceed to be centered on.
