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President Biden Announces Next Step in Reclassification of Cannabis

by Omar Figueroa and Lauren Mendelsohn May 16, 2024   On May 16, 2024, the Biden Administration announced that the United States Department of Justice is taking the next step in the reclassification of cannabis from a Schedule I controlled substance to a Schedule III controlled substance — which would […]

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Tax Consequences of Federal Rescheduling for Cannabis Businesses

by Omar Figueroa & Lauren Mendelsohn May 2, 2024   We recently wrote that the Drug Enforcement Administration will move to reclassify marijuana as a Schedule III controlled substance.  A recent update by the Congressional Research Service makes clear that rescheduling is predicted to result in significant federal tax relief […]

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Update on the Legal Consequences of Rescheduling Marijuana

by Omar Figueroa & Lauren Mendelsohn May 1, 2024 Yesterday, we wrote that the Drug Enforcement Administration is anticipated to support the reclassification of marijuana from a Schedule I to a Schedule III controlled substance.  Today, the Congressional Research Service issued an updated report on the Legal Consequences of Rescheduling […]

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U.S. Department of Health and Human Services (HHS) Recommends that Cannabis Be Rescheduled to Schedule III Under Federal Law

by Omar Figueroa and Lauren Mendelsohn August 30, 2023 The U.S. Department of Health and Human Services (HHS) is suggesting that cannabis should be reclassified from Schedule I to Schedule III under federal law. This significant shift reflects the view that cannabis no longer has a high potential for abuse […]

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Tax Incentives for California Cannabis Businesses

By Omar Figueroa and Lauren Mendelsohn March 20, 2023 Starting in 2023, the State of California is providing several tax incentives for owners of certain types of cannabis businesses. Below we will be discussing the High-Road Cannabis Tax Credit, the Cannabis Equity Tax Credit, and Vendor Compensation for qualifying equity […]

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New Emergency Cannabis Tax Regulations Approved

By Lauren Mendelsohn, Esq. February 3, 2023   On January 30, 2023 the California Office of Administrative Law (OAL) approved emergency regulations related to cannabis taxes that were proposed by the California Department of Tax and Fee Administration (CDTFA). The approved rulemaking package consists of amendments to Section 3700 (Cannabis Excise […]

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Changes to Excise Tax Responsibilities for Retailers and Distributors Coming January 1

By Lauren Mendelsohn November 3, 2022   Significant changes to California’s cannabis excise tax are coming soon, thanks to Assembly Bill 195 (2021-2022), a cannabis “trailer bill” which was adopted by the State legislature over the summer and signed into law by Governor Gavin Newsom on June 30, 2022. We […]

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California’s SB 519 Gutted in Committee, Further Delaying Psychedelic Decriminalization

By Lauren Mendelsohn August 15, 2022 Last week, Senate Bill 519  — which would have removed criminal penalties from certain activities associated with LSD, psilocybin, psilocyn, DMT, mescaline, ibogaine, and MDMA — was amended and gutted of all meaningful parts in a hearing before the Assembly Appropriations Committee last week. […]

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Governor Newsom Signs Cannabis Trailer Bill, Resulting in Largest Changes to State Cannabis Tax Policy Since Prop. 64

Cultivation Tax Immediately Terminated; Excise Tax Modified; and Tax Relief Provided to Certain Licensees By Lauren Mendelsohn July 1, 2022   Yesterday, California Governor Gavin Newsom signed Assembly Bill 195, a budget “trailer bill” containing various items related to cannabis, into law. Among other things, the bill makes significant changes […]

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