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Marijuana executive order launches long process that could give AZ dispensary owners a tax break

Marijuana dispensary large flower jar
Faith Miller/Cronkite News
One of the marijuana strains available at a chain dispensary in west Phoenix

President Donald Trump has ordered the reclassification of marijuana out of the most dangerous category of controlled substances.

An Arizona-based cannabis attorney says doing so will likely draw a legal challenge.

The federal government has for about 50 years put marijuana in the same category of drugs as heroin. Now, to help boost research, Trump has told the Justice Department to put marijuana in a class for less dangerous drugs with medical use.

Local attorney Justin Brandt says the Drug Enforcement Administration will carry out the order, and doing so will take time.

“The DEA still has to go through that entire process. They have to publish a first rule. They have to take public comment. They have to issue a final rule that will most likely be challenged in court,” Brandt said.

Former President Joe Biden also moved to reclassify marijuana. Brandt says Trump’s order to do so is more specific and direct.

The process could also lead to a tax benefit that’s currently off limits for Arizona dispensary owners.

“Because it is Schedule 1, cannabis businesses cannot take any of the typical business deductions that any other business or industry would take. So it's excruciating,” said Laura Bianchi, also an attorney.

Trump’s order calls for marijuana to be made a Schedule 3 drug under the Controlled Substances Act.

More Arizona Marijuana News

Matthew Casey has won Public Media Journalists Association and Edward R. Murrow awards since he joined KJZZ as a senior field correspondent in 2015.