Medical marijuana reclassified as Schedule III drug, changing guidelines for Ohio dispensaries

Acting Attorney General Todd Blanche signed an order Thursday reclassifying FDA-approved and state-licensed medical marijuana from a Schedule I controlled substance to Schedule III — a change that alters tax rules for dispensaries in Ohio and opens the door for expanded medical research nationwide. The Drug Enforcement Agency defines Schedule III drugs as substances with a moderate or low potential for physical and psychological dependence. Before the order, cannabis sat alongside heroin, LSD, methamphetamine and ecstasy on the Schedule I list, which designates drugs with no accepted medical use and a high potential for abuse. For Ohio dispensaries, the reclassification could bring notable financial changes. Under federal tax law, Schedule I businesses cannot deduct standard operating expenses — a restriction that does not apply to most other industries. Edward Manning, general manager of Shangri-La Dispensary in Cleveland, said the change alters how dispensaries are treated under the federal tax code. "I mean, even as simple as a lease or interest on a mortgage — which normal businesses can finance $1 million building and write off the interest every month — we can't do that," Manning said. He noted the new classification changes that directly. "Because we're Schedule III, our federal tax guidelines changed dramatically, which financially is a big win for the Ohio cannabis industry," he told 3News. Annabelle Childers reports: https://www.wkyc.com/article/news/local/ohio/federal-order-medical-marijuana-schedule-iii-changing-regulations-ohio-dispensaries/95-73556324-f0bf-4561-b54b-378d15aa2582 -- At 3News, we’re not here to tell you the news, we’re here to share the stories that you say matter most to you. Share your ideas, thoughts, concerns and engage in conversations about the communities in which we all call home. Follow 3News on Social: Facebook: https://www.facebook.com/wkyc.channel3/ Twitter: https://twitter.com/wkyc Instagram: https://www.instagram.com/wkyc3/ Visit our site: https://www.wkyc.com/ And be sure to download our app here: https://wkyc.com/app