Tag: legalized marijuana

Marijuana Industry Group Pushes Congress For Tax Relief—And To Apply The Fix Retroactively For Past Payments

A leading marijuana industry association has released a report calling on Congress to treat cannabis businesses like other lawful industries by allowing them to take federal tax deductions—and also to apply that policy retroactively to provide relief for past payments.

The report from the National Cannabis Industry Association (NCIA) and a coalition of stakeholders states that “no industry understands the pain of taxes as acutely as the state-regulated cannabis industry which currently pays draconian tax rates as a result of the unforeseen consequences of” an Internal Revenue Service (IRS) code known as 280E.

That code precludes even state-licensed marijuana businesses from taking federal deductions for their expenses because cannabis remains a Schedule I drug under the Controlled Substances Act (CSA).

“This provision is a punitive poison pill that threatens every business in these state-regulated markets, but poses a particular threat to small businesses that have responded to the will of voters,” the report says. “Picture the medical dispensary serving veterans with an alternative to deadly opioids or providing comfort to cancer patients in your community: those businesses cannot survive without action to repeal §280E and, crucially, retroactive relief.”

NCIA says the costs of the IRS policy for the cannabis sector are “staggering,” with marijuana businesses paying an effective tax rate of more than 70 percent. That rate “is economically prohibitive, unsustainable, and counter-intuitive,” it says.

“In the cruelest of ironies, the failure to include retroactive relief for state-regulated cannabis businesses will fall primarily on two groups: small cannabis businesses located in early legalization states and equity-owned businesses provided state-licensing priority specifically because of injuries suffered as a result of cannabis prohibition.”

Notably, NCIA stressed that tax relief for the marijuana industry should be applied retroactively. Without that stipulation, the association said “taxes will continue to result in the closure and consolidation of many state-regulated small businesses.”

“Beyond having negative economic impacts, inaction will also harm public health by forcing consumers back to the untaxed, untested, and unregulated illicit market,” it said.

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Legalizing Medical Marijuana Is Linked To Reduced Use Of Tobacco And Amphetamines, New International Study Shows

There’s a “strong negative association” between tobacco use and legal medical marijuana sales, according to a new international study—indicating a “strong potential substitution effect” where people choose to use cannabis where it is allowed instead of smoking cigarettes.

The study, based on data from 20 countries, also found that amphetamine use is “negatively associated” with medical cannabis sales, “suggesting substitution dynamics.”

The researchers additionally concluded that a “well-regulated [medical cannabis, or MC] market can generate sustained economic benefits, emphasizing the need for comprehensive legal frameworks that address licensing, production standards, and access pathways,” adding that “removing barriers to access and enhancing consumer education will support the development of a responsible and sustainable market.”

The analysis also showed “a sustained growth trajectory” in medical cannabis sales after legalization, finding that the policy change is “associated with an average annual increase of 26.06 tons of MC sales in legalizing countries.” After excluding the U.S., which the researchers called “a major outlier in market size,” there was “a slightly lower average effect of 20.05,” which “still supports the persistent market expansion.”

The authors, based in Germany and Lebanon, cautioned that “given the ecological nature of the design, these results should be interpreted as population-level associations rather than individual-level causal effect.”

“Nonetheless, they highlight the potential economic relevance of cannabis legalization in expanding regulated markets and reshaping consumer behavior,” the paper says. “The study contributes to debates on legalization, public health, and economic policy by providing empirical evidence on the associations between legal reforms and market dynamics.”

The study comes amid new research indicating that marijuana use is linked to lower alcohol intake and diminished cravings in heavy drinkers, according to a new federally funded scientific paper.

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Michigan Lawmakers Embrace Marijuana Tax Hike Plan Proposed By Governor

Michigan Senate Democrats are reportedly moving toward implementing a major tax hike on marijuana that was previously proposed by Gov. Gretchen Whitmer (D).

While no legislation to effectuate the policy change has been filed yet, the plan is to impose a 32 percent wholesale excise tax on cannabis—which would be in addition to the existing 16 percent in taxes that are placed on marijuana at the retail level.

The governor said in February that the proposal would “close a loophole that exempted the marijuana industry from wholesale tax, which is applied to similar smoking products, like cigarettes, and other tobacco items.” Aligning those tax policies, her office said, could help the state fund plans to “fix the damn roads for generations to come.”

“After voters legalized marijuana, the industry has grown exponentially thanks in part to Michigan’s industry-friendly taxes, the fourth lowest in the nation,” the governor said at the time. “The industry, which recorded billions in sales in 2024, uses Michigan roads to transport marijuana multiple times throughout the process, including to grow operations, testing labs, distribution hubs, and finally retail stores. This will add an additional $470 million to help fix roads across the state.”

It would also effectively double the total tax rate on cannabis in Michigan, which advocates say would unfairly burden businesses and consumers.

“Michigan’s cannabis consumers already pay more than their fair share of taxes. They should not be singled out to bear the costs of ‘fixing the damn roads,’” Karen O’Keefe, director of state policies for the Marijuana Policy Project (MPP), told Marijuana Moment.

“Michigan’s excise taxes are about 10 times as high on cannabis as they are on alcohol,” she said. “Gov. Whitmer’s proposal would roughly double the tax burden on consumers, many of whom are medical patients who are struggling to make ends meet.”

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Huge legal cannabis farm told to cut smell or risk closure

A massive legal cannabis farm in the Netherlands has been told to reduce the odor coming from its facility or risk closure after more than 2,000 complaints from hundreds of residents, according to a regional Dutch environmental agency.

If the farm fails to sufficiently limit the smell, CanAdelaar – the company that operates the farm – could face fines of up to €3.5 million ($4.1 million) or risk being shut down, local authorities said after a court ruling earlier this week.

The farm is located west of the Netherlands’ second largest city Rotterdam. It opened in 2023 as part of a government scheme permitting several companies to grow cannabis under strict conditions, said DCMR Environmental Protection Agency, which monitors the business on behalf of the municipality of Voorne aan Zee, where the farm is located.

Reports of “odor nuisance” were received immediately after the farm’s opening, DCMR said in a statement first published in December but amended Wednesday.

“By August 2025, DCMR had received approximately 2,000 reports from nearly 300 different residents,” the agency said. Rotterdam’s judiciary court said in a statement Wednesday that more than 2,000 complaints had been filed.

The company has previously promised to implement “odor mitigation measures” to tackle the issue, according to DCMR.

According to DCMR, inspectors observed “odor nuisance” during multiple inspections and concluded that the company was “not always” complying with the appropriate regulations. As a result, Voorne aan Zee municipality imposed customized regulations on the farm to reduce odor, DCMR said.

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Canada’s Experience Provides Evidence Marijuana Legalization Doesn’t Fuel Gun Violence

On Fox News this week, Laura Ingraham and Alex Berenson pushed the narrative that marijuana use is fueling violent crime and mass shootings, with Berenson claiming cannabis is regularly found in autopsies and warning that rescheduling would put “public safety at stake.” It’s a familiar line from prohibition-era talking points — and one that falls apart when you look at Canada.

Canada legalized recreational marijuana for adults 18 and older in October 2018. In the years since, millions of Canadians have consumed marijuana legally, with usage rates climbing steadily. If marijuana truly triggered psychosis and mass violence on the scale Ingraham and Berenson suggest, Canada would have seen a dramatic rise in gun deaths and shootings. That hasn’t happened.

Statistics Canada data shows the homicide rate in 2019 — the first full year after legalization — actually declined slightly from 2018. Gun deaths have fluctuated year-to-year, but there has been no sudden increase linked to cannabis policy, with mass shootings remain exceedingly rare. The country’s worst modern mass shooting, in Nova Scotia in 2020, involved illegal firearms and police have confirmed that it had nothing to do with marijuana. In response, Canada tightened gun laws further, banning more than 1,500 models of assault-style weapons.

Meanwhile, cannabis consumption has grown. Surveys show that adult use climbed from around 22% in 2018 to about 27% in 2021. Emergency room visits related to cannabis rose somewhat, but public health experts attribute this to more people being willing to disclose use, not to a sudden surge in dangerous outcomes.

In short, Canada provides years of data proving that legalizing marijuana does not drive psychosis-fueled gun deaths or mass shootings. Claims to the contrary are rhetoric, not reality.

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Analysis: Marijuana Retailers Not Associated With Increased Prevalence of Motor Vehicle Accidents

The opening of marijuana retailers is not associated with any immediate increases in motor vehicle accidents, according to data published in the journal Cannabis and Cannabinoid Research.

Yale University researchers assessed motor vehicle crash data for the weeks prior to and after the adoption of adult-use marijuana legalization in Connecticut. They also compared motor vehicle crash data during the same period with that of a control state (Maryland). 

Researchers reported “no significant changes” in the prevalence of either statewide accidents (compared to Maryland) or local (within proximity to dispensaries) accidents.

“Here we show that the introduction of recreational cannabis dispensaries in Connecticut did not lead to a significant rise in MVA [motor vehicle accident] rates statewide or at the local level near cannabis dispensaries,” the study’s authors concluded. “The lack of substantial differences in crash rates within the eight weeks before and after recreational dispensary openings suggests that dispensaries may not be a relevant determinant of traffic safety in the proximity of these outlets.”

The study’s findings are consistent with those of a three-year analysis of motor vehicle crash data from Washington state, which reported “no statistically significant impact of cannabis sales on serious injury/fatal crashes” following retail commercialization. By contrast, assessments from other states evaluating longer-term trends in traffic safety following legalization have yielded mixed results. 

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California’s Small Cannabis Farmers Have Been Left High and Dry

Dan Golden has been growing weed for almost 20 years. As he hand-watered his plants on his 70-acre farm, he maintained a firm stare. He’s long abstained from alcohol—ever since his daughter was born—and his daily routine begins at 6 am. “This is life or death for me. I’ve never done anything else,” said Golden. The property is seated in a narrow valley in Humboldt County, California, a three-hour drive from the nearest store in Garberville, with large rock outcroppings running east to west. Before 2020, he owned the land outright, but four years ago, he was forced to refinance it to pay for the exorbitant fees and permits required to be a compliant legal cannabis farmer.

Cannabis has long been part of counterculture in America, and arguably no place and its peoples have done more to fuel the evolution of the plant and its mythos than Humboldt County. And yet, perversely, no place has been as left behind by legalization.

Through a series of broken promises, legislative missteps, and onerous compliance measures, the small, legacy farmers once on the front lines of normalizing marijuana for decades have been snuffed out. Now their communities are suffering. “Everyone thinks: Growing weed, that must be fun,” Golden said. “They don’t know how hard it is.”

Since 2016, when cannabis was voted legal for adult use by ballot measure, the market has been rife with snafus in California. Promises to protect those that gave rise to the industry fell flat; instead, these farmers have been met with byzantine laws, expensive permit fees, regulations, and taxes that have hampered their ability to stay competitive in open markets. Most attempts to aid craft cultivators have failed or have been denied, and many farmers say the July 1 increase of the California cannabis excise tax—from 15 percent to 19 percent—could be yet another crushing blow. Though Governor Gavin Newsom said he’d sign a freeze of the increased excise tax if it reached his desk, legislators have so far failed to act.

Many of the players have since quit the game altogether. Agricultural real estate prices have tumbled in Humboldt County as local businesses not directly associated with cannabis try to hold on in the shifting economic landscape. Meanwhile, mega-cannabis corporations dominate the market with questionable labor practices and deflated prices meant to eliminate competition. In typical corporate-capture fashion, these companies have pushed out competitors by sheer scale, lowering their prices so no one else can survive, then, once they’re the only ones left standing, they’re able to jack the prices back up.

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Minnesota Marijuana Businesses Say Tax Increase Could Drive Consumers To The Illegal Market

A last-minute tax hike on cannabis products passed as part of Minnesota lawmakers’ special session budget compromise may prove to be a boon to illicit dealers.

That’s according to cannabis industry experts, business owners, and at least one prominent DFL lawmaker who say the state’s relatively high cannabis tax will give consumers reason to avoid regulated, legal dispensaries in favor of informal sources on the black market.

Minnesota’s 15 percent state tax on marijuana and other cannabis products is among the highest in the country, trailing only Arizona (16 percent), Oregon (17 percent), California (19 percent), and Washington (37 percent).

“I thought it was the wrong thing to do, increasing the tax,” said Sen. Ann Rest, DFL-New Hope, chair of the Senate Tax Committee. “What we saw in California is that the high tax on legitimate cannabis leads straight to the black market. And I’m very concerned that that’s going to have the same or similar impact here.”

How do Minnesota taxes compare to other states?

Minnesota’s cannabis tax was initially set at 10 percent. The increase was a product of bipartisan budget negotiations between Gov. Tim Walz, Senate Majority Leader Erin Murphy, DFL-St. Paul, House Speaker Lisa Demuth, R-Cold Spring, and the late Speaker Emeritus Melissa Hortman, DFL-Brooklyn Park. The leaders stepped in to try to forge a compromise on the state’s budget after months of gridlock in the Legislature due to a tied House and a one-seat DFL majority in the Senate.

At the time, Demuth said the tax increase was simply “rightsizing” the tax rate to be more in line with other states’ rates. But, research by the Tax Foundation shows that the new rate puts Minnesota above the median tax rate for states that have legalized the sale of recreational marijuana.

Of those 23 states, 14 have a lower cannabis tax than Minnesota. There are nuances, like Illinois’ higher tax on edibles and concentrates compared to marijuana flowers, as well as two states that tax by weight rather than price.

This doesn’t account for Minnesota’s sales tax of 6.875 percent, and any local taxes. In Minneapolis, state, county, and city sales taxes are 9.03 percent. Add that to the cannabis tax and you end up with an effective tax rate of over 24 percent on cannabis products sold in the city.

“I’ve had people pick out their products, ring them up, and then when they hear the final price, they just walk out the door,” said Mark Eide, owner of In-Dispensary, the first recreational dispensary licensed in Minneapolis.

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Trump’s Pick For Traffic Safety Agency Will ‘Double Down’ On Marijuana-Impaired Driving Warnings As More States Legalize

President Donald Trump’s nominee to lead a key federal traffic safety agency says he’s prepared to “double down” on increasing awareness about the risk of marijuana-impaired driving in partnership with the White House.

During a Senate committee hearing, the nominee to serve as administrator of the National Highway Traffic Safety Administration (NHTSA), Jonathan Morrison, was pressed on the need to develop technology to detect impairment from THC and also educate the public about the issue.

Sen. John Hickenlooper (D-CO), who has long focused on promoting public safety around cannabis and driving, noted at the hearing that while there’s a national standard for assessing alcohol impairment, “currently, there is no uniform national standard to measure marijuana impairment.”

“Creating a national standard marijuana impairment is going to ease the burden of law enforcement, prosecutions, help clarify legal requirements for states and, without question, save countless lives,” the senator said.

The NHTSA nominee agreed and added that he feels “there isn’t necessarily public consciousness that when people are using marijuana, that it has an impairing effect on their ability to drive a vehicle.”

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Federal Agent Warns DC Residents Trump Is ‘Tired Of’ Public Marijuana Consumption Amid ‘Surge’ To Combat Crime In Nation’s Capitol

President Donald Trump is “tired of” marijuana and alcohol being consumed in public, a federal agent told a group of people sitting on a porch in Washington, D.C. in a video that was highlighted by Last Week Tonight’s John Oliver.

As the National Guard and multiple federal agencies—including the Drug Enforcement Administration (DEA), Customs and Border Protection (CBP) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)—take part in the federalization of law enforcement in the District of Columbia, there was one interaction over the weekend that caught national attention.

In the clip featured on Oliver’s HBO show Last Week Tonight, an agent approached a group, apparently on suspicion that they were publicly using cannabis outside their residence.

“We’re doing checks, keeping everybody safe down here,” the agent said, asking if they had “heard of the federal surge that Donald Trump’s putting out.”

He was referencing an executive action that activated the National Guard and other agencies to participate in policing in the nation’s Capitol, with the aim of tackling violent crime. Local officials have disputed the justification for the “surge,” pointing to lower-than-average crime rates in D.C. in recent years.

But as federal agents swept the streets of D.C.—which White House Press Secretary Karoline Leavitt said on Tuesday resulted in 465 arrests over about two weeks—questions are being raised about the nature of the crimes those officers were targeting.

Oliver said that “the purest expression” of the disconnect was “this cringe-inducing encounter where a group of agents approach a man they mistakenly think is smoking marijuana on his back porch, which, by the way, is completely legal in D.C.”

(For the record, possession of limited amounts of marijuana by adults is legal in the District under a voter-approved law—but public consumption is prohibited.)

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