Reclassifying marijuana would not make it nationally legal for recreational use by adults, but it could change the way marijuana is regulated and taxed.
Local cannabis professionals welcome this change.
“We look forward to the new opportunities rescheduling will provide cannabis businesses of all sizes, including critical banking and regulatory reforms that will unlock additional health, wellness, and economic benefits for communities nationwide,” said Verano CEO George Archos. His company operates dispensaries in Springfield and Middletown.
Credit: Nick Graham
Credit: Nick Graham
Ohio’s recreational cannabis program launched in 2024. Under Ohio law, customers 21 and older can buy up to 2.5 ounces of recreational cannabis at licensed dispensaries.
The federal reclassification of marijuana would open pathways for dispensaries to access some banking services and tax benefits. Under the federal tax code, businesses involved in “trafficking” in marijuana or any other Schedule I or II drug can’t deduct rent, payroll or various other expenses that other businesses can write off. Some industry groups estimate that the tax rate ends up at 70% or more.
But rescheduling wouldn’t directly affect a common marijuana business problem: difficulty accessing banks, particularly for loans, because the federally regulated institutions are wary of the drug’s legal status.
It could also lift some barriers toward medical cannabis research.
“The federal government’s long delay in recognizing the medical use of marijuana does not serve the Americans who report health benefits from the medical use of marijuana to ease chronic pain and other various medically recognized ailments,” Thursday’s executive order stated. “Americans who often seek alternative relief from chronic pain symptoms are particularly impacted.”
As of the end of October, Ohio’s medical marijuana program had 463,580 registered patients. More than 26,000 of these patients have a veteran status, and an additional 1,557 patients have a terminal diagnosis.
“We are optimistic that continued progress will support a transparent and regulated framework that protects individual liberties, enhances public health, fosters a well-regulated market, and drives domestic employment and economic growth,” said Sam Brill, the CEO of Ascend Wellness Holdings. His company operates a dispensary in Piqua.
Trump’s order also calls for expanded research and access to CBD, a legal and increasingly popular hemp-derived product. And a new Medicare pilot program would allow older adults to access legal hemp-derived CBD at no cost, if recommended by a doctor, said Dr. Mehmet Oz, who heads the Centers for Medicare and Medicaid Services.
The Biden administration last year asked both the Department of Health and Human Services and the attorney general, who oversees the Drug Enforcement Administration, to review how marijuana was classified, considering a shift to the Schedule III category.
Schedule III drugs include ketamine, anabolic steroids and some acetaminophen-codeine combinations and are controlled substances. They’re subject to rules that allow for some medical uses, and for federal criminal prosecution of anyone who traffics in the drugs without permission.
The Associated Press contributed to this report.
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