Excise Tax or Regulatory Fee? A Warning for Bankruptcy Practitioners and Cannabis Clients

In In re Sandia Tobacco Mfrs, Inc. , 2018 WL 4964295 (Bankr. D.N.M. Oct. 12, 2018), the Bankruptcy Court for the District of New Mexico recently held that certain outstanding “assessments” arising under the Fair and Equitable Tobacco Reform Act of 2004, 7 U.S.C. §§ 518-519(a), and its accompanying regulations were excise taxes entitled to priority under Section 507(a)(8)(E) of the Bankruptcy Code.

Source: Excise Tax or Regulatory Fee? A Warning for Bankruptcy Practitioners and Cannabis Clients