Michigan marijuana shops could pocket more money as the U.S. Drug Enforcement Administration moves to reclassify marijuana as a less-dangerous drug. The change could exempt cannabis retailers from tax restrictions that eat into their profits.
U.S.Attorney General Merrick Garland proposed Tuesday that marijuana be reclassified from Schedule I, a category that includes drugs like heroin, LSD and ecstasy, to Schedule III, the Associated Press reported. Schedule III drugs include ketamine, anabolic steroids and testosterone.
The DEA defines Schedule I drugs as those with no accepted medical use and a high potential for abuse. It defines Schedule III drugs as having little to no potential for physical and psychological abuse.
Michigan marijuana shops could pocket more money as the U.S. Drug Enforcement Administration moves to reclassify marijuana as a less-dangerous drug. The change could exempt cannabis retailers from tax restrictions that eat into their profits.
U.S.Attorney General Merrick Garland proposed April 30 that marijuana be reclassified from Schedule I, a category that includes drugs like heroin, LSD and ecstasy, to Schedule III, the Associated Press reported. Schedule III drugs include ketamine, anabolic steroids and testosterone.
The DEA defines Schedule I drugs as those with no accepted medical use and a high potential for abuse. It defines Schedule III drugs as having little to no potential for physical and psychological abuse.
“Next, Congress needs to act to remove marijuana from the list of controlled substances altogether and create a federal regulatory framework that’s more comparable to alcohol,” Aaron Smith, executive director of the National Cannabis Industry Association, told Bridge.
The DOJ’s recommendation is based on “the mountain of evidence that there is medical value to cannabis.” Smith said. “It might mean that more banks decide to take the risk of banking with cannabis (businesses) but it doesn’t change the banking regulations.”
Although recreational use of marijuana is legal in Michigan, cannabis has not been legalized federally. Under Internal Revenue Code Section 280E, those who sell Schedule I and Schedule II controlled substances don’t qualify for deductions or tax credits. This tax code has a significant impact on the revenue of cannabis business owners. For instance they can’t write off marketing expenses that pay for advertising. Under schedule III they could.
Read more at Bridge Magazine