Several organizations and cannabis companies sent statements to High Times. The National Cannabis Roundtable (NCR) applauded the historic acknowledgement that a federal agency has recommended cannabis be reclassified. The NCR announced that they have been instrumental in advocating for and informing the heads of the HHS in a memo, and the DEA in an open letter, as to the scientific facts and medical value of cannabis meriting its reclassification to at least Schedule III.
They acknowledged, however, the limitations of the authority of HHS and DOJ when it comes to the CSA and urged the DEA to follow the scientific findings of HHS and the FDA in this process.
“A move to Schedule III would mean 280E no longer applies to regulated cannabis companies,” Saphira Galoob, Executive Director of the National Cannabis Roundtable, told High Times in an email. “Not only does this reduce the extreme tax burden currently faced by the industry, but it allows them to take advantage of critical tax credits on things like payroll and other routine businesses costs regularly used by other legal entities. Cannabis companies continue to face issues with access to capital and banking services, resulting in cash intense operations. The ability to reinvest more of their revenues in their operations, instead of a majority of all revenue going to taxes, will be extremely impactful for the regulated cannabis industry—particularly small and minority operators.”
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