With Missouri ramping up for the beginning of Recreational Sales I want to dive into statistically what rec means. Before I jump into all of the good statistics that we are seeing in other rec states, I want to talk a little more about what rec means for cannabis companies in Missouri. Previously I did a blog explaining what 280E is, even with a basic understanding of 280E, I wanted to dive a little deeper into how much it hurts companies. Below I have shared a chart breaking down a side by side example of how negatively 280E impacts companies.
Internal Revenue Code Section 280E: Creating an Impossible ... - NCIA. https://thecannabisindustry.org/uploads/2015-280E-White-Paper.pdf?source=content_type%3Areact%7Cfirst_level_url%3Aarticle%7Csection%3Amain_content%7Cbutton%3Abody_link.
In layman's terms, costs such as utilities, salaries, marketing, benefits , facility fees such as rent and other services that you would need to run a fully functioning business like internet and phone services. Forget updating the facility or having routine maintenance services. Companies that do not make their money from the sales of cannabis are able to receive tax deductions on all of the things listed above and more. 280E is a massive issue that will inevitably affect the ability of smaller companies to enter and survive in the market. So it is imperative that we find a way to change this, that we find a way to support the companies in the current market and those who wish to enter into it in the future.
I don’t know what the solution is, cannabis either needs to be rescheduled and/or made federally legal. Maybe someone can send this to a politician and we can figure out a way to ignite change. This change would be massive, it would change the functionality of the cannabis industry, it would change the culture. Instead of ending up in the red or with minimal profits after paying taxes, companies would be able to invest back into their companies and their employees. This would be game changing.
Moving on though, what other important statistics are there when it comes to recreational and medicinal cannabis usage?
According to Eaze the two most cited reasons for cannabis use in the United States are stress and mental health management. New Frontier Data found that 55% of people who use cannabis state that they use it both recreationally and medicinally . Pew Research Center put out that 91% of American adults support some level of cannabis legalization. In 2021 Leafly put out that the cannabis industry was providing around 280 new positions per day. That is wild. PER DAY!
One of the biggest things I want to talk about though is the correlation between legal cannabis usage and the decrease in crime as well as illicit drug usage. I am not saying that we have found the be all magical solution, but I am saying that there is factual evidence supporting those two statements, maybe it is the fact that people are able to go to the store and purchase as opposed to meeting someone's neighbors cousins brothers wives baby daddy in an alley. Maybe it's because the prices of dispensary cannabis are truly cheaper than those of my former dealers. Legal cannabis is an amazing thing. Federally legal cannabis is an even better thing.
Federally legal cannabis and the elimination of the 280E law in regards to cannabis profits could truly be the change that the US needs. From boosting the economy and creating a plethora of new jobs, it also just makes the world a little bit of a better and happier place. This all being said, it is so important to recognize and understand that cannabis is NOT for everyone. There are even people who suffer from a condition that makes them vomit when they use cannabis, that is a real life thing. It is even possible to get cannabis use disorder, we will delve deeper into that in the next blog though.
My final statement on this is that no one should ever be in jail for a plant. No one should have to sacrifice paying themselves in order to make ends meet due to these awful tax regulations. We have the ability and quite frankly the responsibility to fight for change.
Til next time!
The STL Stoner Mom
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Sources:
Internal Revenue Code Section 280E: Creating an Impossible ... - NCIA. https://thecannabisindustry.org/uploads/2015-280E-White-Paper.pdf?source=content_type%3Areact%7Cfirst_level_url%3Aarticle%7Csection%3Amain_content%7Cbutton%3Abody_link.
Medic, Marko. Cannabis Industry Statistics 2023: Where the Industry Stands and Where It’s Headed. 1 Nov. 2022, www.npws.net/blog/cannabis-industry-statistics?hs_amp=true.
Nwoko, Sobem. Crime Rates After Legalization of Weed | Marijuana and Crime. 22 Sept. 2022, www.ebpsociety.org/blog/education/525-the-effect-of-marijuana-legalization-on-crime-rates.
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