Michael Rosenblum Discusses Tax Implications for Cannabis Move to Schedule III

In an interview with the Daily Journal, Thompson Coburn partner Michael Rosenblum discussed the implications of rescheduling cannabis as a Schedule III drug, which would slash federal taxes on drug dispensaries. Cannabis would still remain on the Controlled Substances Act schedule, which would mean the Drug Enforcement Administration could regulate it, but there is no plan for it to do so.

“From an industry standpoint, it’s a big step forward but it could also create a huge mess,” said Michael. He added that he favors descheduling, which would treat cannabis – sold for recreational use in half of the states in the country – like alcohol.

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In another interview published by Benzinga, Michael said that although cannabis would remain a controlled substance, rescheduling would reduce obstacles faced by businesses and consumers. "The most important benefit for weed businesses would be tax relief regarding the issue of the IRS code 280E, which prohibits the marijuana industry from taking federal deductions.”

Click here to read the full Benzinga article.