Custody without ownership
When a transporter carries product under manifest for another licensee, that product is not the transporter's inventory. Revenue is a service fee, and the balance sheet should never carry the cargo.
Where a transportation entity does take title — for example when it operates alongside a distribution function — the accounting changes and inventory rules apply. We map each arrangement before booking it.
Manifest reconciliation
Every movement generates a manifest in Metrc with quantities on both ends. Reconciling departures to receipts is both a compliance requirement and the evidence that supports the service revenue billed.
- Manifest-to-invoice reconciliation for every route
- Chain-of-custody documentation retained with the billing record
- Variance investigation where delivered quantities differ from manifest
Fleet and route costing
Margins are thin and mileage-driven. We cost by route and by vehicle — driver labor, fuel, maintenance, insurance, security and depreciation — so pricing reflects the real cost of a run from a cultivation site near Jefferson City to retail in St. Louis.
Tax position for transportation licensees
Whether 280E applies turns on whether the entity is trafficking in the controlled substance itself. Licensed transporters handling product for others often have a materially different profile from plant-touching licensees, and the analysis is fact-specific. We document the position rather than assume it.
Frequently asked questions
Do Missouri transporters carry inventory on their books?
Not when they are moving product owned by another licensee. The cargo stays on the owner's books and the transporter records service revenue.
Is a transportation facility subject to 280E?
It depends on the specific activities and whether the entity is treated as trafficking. The analysis is fact-driven and should be documented in a written position.
