WASHINGTON — The U.S. Drug Enforcement Administration has issued registrations to medical marijuana dispensaries for the first time, a step that could open the door to federal tax deductions long denied to the industry, the Associated Press reported via KTAR News.
The DEA issued the registrations Friday to more than 900 state-licensed dispensaries in Alabama, Florida, Mississippi, South Dakota, Texas, Virginia and West Virginia, the Justice Department said. Arizona was not on the initial list of states.
Attorney General Todd Blanche said regulated distribution of medical cannabis from those shops “will help ensure broader access to chronic pain treatment and the safety of the American people.”
In April, Blanche signed an order moving state-licensed medical marijuana from Schedule I to the less restrictive Schedule III and setting up an expedited registration process with the DEA. Because Schedule I businesses cannot deduct ordinary expenses such as rent, advertising and labor on federal taxes, registration is expected to bring large tax benefits, the AP reported.
Nearly 7,000 other dispensaries, manufacturers and distributors nationwide have applied for registration, according to a DEA list published Friday.
“For the first time, the federal government is recognizing and registering the medical cannabis dispensaries that patients fought to establish,” said Steph Sherer, founder of Americans for Safe Access.
Questions remain about what requirements the DEA will impose, since medical marijuana is regulated very differently from other Schedule III drugs. Arizona has allowed medical marijuana since voters approved it in 2010.
Sources: Associated Press via KTAR News. Thee Arizona Times uses AI-assisted reporting reviewed against the sources listed.
Photo: City of Detroit / Public domain via Wikimedia Commons.
