The Oregon marijuana industry is hurting, much like industry in California and other states. Among the many reasons (overproduction, market saturation) is that federal marijuana laws have not been reformed at all.
For years marijuana entrepreneurs and their cheerleaders have repeated the refrain that federal reform of marijuana laws is just around the corner. These reforms are supposed to eliminate tax burdens, open up interstate commerce, and usher in a golden era for selling weed.
But what if reform isn’t just around the corner? What if the marijuana scheduling review directed last week by President Biden results in something less than a full descheduling of marijuana under the federal Controlled Substance Act? (A very real possibility.)
In this first of a two-part series, I’ll discuss why federal marijuana laws may not change any time soon. In the second part, I’ll discuss what this may mean for the industry.
Ask any marijuana business to identify why it isn’t making money and the answer is often IRC 280e. This aspect of the tax code is a disaster for licensed marijuana businesses. It is a windfall, however, for the tax collector.
The federal government collects vastly more money from the marijuana industry with
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