Known as the Marijuana Opportunity Reinvestment and Expungement Act, or MORE Act, this bill would declassify cannabis from the Controlled Substances Act. The bill would also help people protect themselves from losing earned benefits because of their use of cannabis.
Excise Tax on Cannabis Products
Despite the positive growth of the cannabis industry, cannabis retailers face significant challenges due to federal taxation. Currently, retailers in the legal cannabis industry pay over $1.2 billion in federal taxes during the first half of 2018.
Taxation for cannabis businesses is significantly higher than for other businesses. For instance, the IRS’s IRC section 280E prohibits businesses from deducting expenses related to the illicit trade of marijuana. This stifles businesses’ ability to operate.
Thankfully, the National Cannabis Industry Association is working with members of Congress to address the federal taxation of cannabis and other related products. This includes working to ensure that the federal government does not put barriers to entry for the cannabis industry.
One bill in particular, the SAFE Banking Act of 2021, would make it possible for cannabis businesses to gain banking access. The law would also limit punitive measures against depository institutions and ancillary businesses.
Another bill, the Marijuana Opportunity Reinvestment and Expungement (“MORE”) Act, would remove cannabis from the Controlled Substances Act (CSA). The legislation would also impose an excise tax on cannabis products. The tax would start at 5% for the first two years and would increase 1% each year until year five. The excise tax would be based on the prevailing sales price of cannabis.
Protect People From Losing Earned Benefits Due to Cannabis Use
Several states have passed legislation that protects workers from the embarrassment of failing a drug test. While this may seem quaint, a job loss based on a positive test can put an unemployed worker at risk of losing unemployment benefits. Fortunately, the state of Colorado is allowing its Department of Human Resources to take into account the presence of medical marijuana in determining a child’s welfare.
Despite its legal status, cannabis remains illegal at the federal level. This makes it difficult for employers to enforce strict drug testing policies. However, some states have enacted more stringent laws. In June of this year, Nevada enacted a law limiting the number of times an applicant for a job can be rejected for failing a test.
A recent survey by the Substance Abuse and Mental Health Services Administration found that more than 24 million Americans aged 12 and older reported having used marijuana at some point in their lives. This number has increased dramatically in recent years.
More Bills are in the Works
Earlier this year, the House of Representatives passed H.R. 3917, the Marijuana Opportunity Reinvestment and Expungement Act. The bill is designed to eliminate marijuana penalties and give people a clean slate after they’ve been convicted of a marijuana-related offense.
The bill is designed to remove marijuana from the list of Schedule I substances and would allow for expungement of past marijuana convictions. The bill would also enact other criminal justice reforms related to cannabis.
The Marijuana Opportunity Reinvestment and Expanement Act (MORE) would also eliminate the criminal penalties for marijuana possession, a measure that supporters believe is necessary to end the failed federal “war on drugs”. The bill would also make marijuana legal in the United States.
The bill would remove cannabis from the Controlled Substances Act and place it on an equal footing with alcohol, tobacco, and cocaine. The bill would also create an Opportunity Trust Fund to fund health education programs, legal counseling, substance misuse treatment, and youth recreation or mentoring programs. The tax on cannabis sales would start at 5% and would increase to 8% over the next three years. The proceeds from the tax would be divvied up between the Opportunity Trust Fund and a new equitable licensing grant program.
