COLORADO SPRINGS — The U.S. Drug Enforcement Administration (DEA) is expected to reschedule marijuana as a lower-risk drug. But, what does this mean for local cannabis businesses and your next trip to the dispensary?
The DEA classifies marijuana as a Schedule l controlled substance, along with other drugs like heroin and LSD. Federal officials could reschedule marijuana to a Schedule lll controlled substance, putting it at the same level as drugs like ketamine and Tylenol with codeine.
The potential rescheduling means marijuana dispensaries would no longer be subject to a tax code prohibiting businesses selling Schedule l and Schedule ll substances from deducting normal business expenses.
Karlie Van Arnam, the general manager of Pure Medical in Colorado Springs, said this could lead to more profit for dispensaries. She said her medicinal marijuana shop pays about a 70% tax rate while ordinary businesses pay around 20-30%.
"This will finally allow our businesses to be taxed just like any other regular business," said Van Arnam. The small businesses will be more profitable, have the opportunity to provide better-paying jobs, more jobs, and possibly pass the savings along to the consumers."
Jennifer Schwab, a Colorado cannabis attorney, said the possible rescheduling could be an incentive for more cannabis businesses to join the industry. However, she said not in Colorado Springs. The city has met its cap for the number of medicinal marijuana licenses allowed.
Schwab said the move to re-classify marijuana as lower-risk could allow dispensaries to have more banking options.
"The rescheduling is probably going to make it a little bit easier to bank with certain institutions that up until this point have been hesitant or have just flat-out prohibited any kind of business with cannabis businesses," she said.
Moving marijuana to a Schedule lll drug might also allow more dispensaries to take credit cards from customers instead of just cash, according to Schwab. She said the move to reschedule the drug is also a symbolic gesture.
"It takes away some of that stigma and makes it a little bit more publicly acceptable," she said.
A final decision has not been made to reschedule marijuana. The formal process to do so includes a period of public comment. The drug will still be illegal federally even if it's rescheduled.
____
____
Watch KOAA News5 on your time, anytime with our free streaming app available for your Roku, FireTV, AppleTV and Android TV. Just search KOAA News5, download and start watching.
