Trulieve CEO: Federal Rescheduling Could Change Heavy Tax Burden For Cannabis Industry

"It's not if, it's just when," said Kim Rivers, CEO of Trulieve Cannabis Corp TCNNF, regarding the recent recommendation by the Health and Human Services Department (HHS) to the Drug Enforcement Administration (DEA) regarding the rescheduling of cannabis.

In a recent interview with Maureen Meehan, Benzinga cannabis editor, Rivers expressed her enthusiasm and optimism regarding this potential change in federal cannabis classification, which would effectively remove cannabis from the federal prohibited list.

"The reduction of cannabis from a Schedule I to a Schedule III is monumental and that has significant practical impacts for our business," Rivers said.

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Federal Cannabis Rescheduling & Its Impact On Business Operations

Rivers stressed how cannabis businesses have been obliged to operate with cash-only due to federal prohibition and associated tax implications. "We have to run our businesses incredibly efficiently because of the cash implications, really primarily due to the fact that we have this heavy, heavy tax burden," she said.

Drawing on Trulieve's own experience, she shared that "Trulieve has paid over $220 million in 280E-related taxes in the last 24 months." With the rescheduling, businesses like Trulieve would see a potential relief from this burden, enabling them to further invest in growth opportunities.

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However, Rivers said she does not see this move as the end goal but rather stressed the need for Congress to also push forward with the SAFE Banking Act, which currently sits with the Senate Banking Committee. "We think this is helpful in that it signals to Congress, hey, there is evidence here. There's medical evidence here. The FDA is saying this should not be a Schedule I," she stated.

Legitimizing businesses and normalizing cannabis banking would have a snowball effect, Rivers said, propelling states toward further legalization. "And we think that this momentum is really key. And again, very, very excited to be at the forefront as we turn the page on prohibition," she added.

• If you are interested in hearing more about these topics, the upcoming Benzinga Cannabis Capital Conference in Chicago is honored to have Rivers as a keynote speaker. Mark your calendar for September 27-28. 

Looking forward to the Benzinga Cannabis Capital Conference in Chicago, Meehan highlighted the importance of industry leaders like Rivers being present to provide insight and guidance. To this, Rivers expressed, "It's been a long time coming and we're due."

With Rivers' insights and the looming potential of rescheduling, the future of the cannabis industry seems to be on the cusp of a significant transformation. Want to hear more? Delve deeper into this conversation at the upcoming Benzinga Cannabis Capital Conference, which is returning to Chicago on September 27 and 28. All information is available on bzcannabis.com

Image by Benzinga