Amid reports that President Donald Trump is expected to advance cannabis rescheduling, Denver Fox affiliate KDVR interviewed Strategies 64 partner Mason Tvert, who spoke on behalf of Colorado Leads about the impact it would have on Colorado cannabis businesses. Watch a video of the news story below.
Mason highlighted how reclassifying cannabis from Schedule I to Schedule III would greatly improve tax fairness, as state-regulated cannabis businesses would no longer be subject to Section 280E of the Internal Revenue Code, which currently prohibits them from deducting ordinary business expenses like other businesses can.
As KDVR reported:
The president signed an executive order on A.I. last week, and he could be signing an order dealing with marijuana soon. The two moves are getting different reactions here at home.
“Marijuana would still be illegal (at the federal level), but it would simply be treated differently under the law. And that has significant political and policy implications down the line,” said Mason Tvert of Colorado Leads.
The president said he is strongly considering rescheduling marijuana from a Schedule I to a Schedule III, classifying it as a less dangerous drug. Tvert, a marijuana industry group, said the proposed change could allow cannabis businesses to be treated more fairly under federal tax policy, pave the way for more research and signify a shift.
“The most significant change for cannabis businesses would be the tax relief it provides. Currently, legal cannabis businesses are paying 70% or more in an effective tax rate, which is far greater than other legal businesses. They might see some relief if cannabis is rescheduled,” Tvert said.
