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Marijuana reclassification would give Maryland’s cannabis industry a major tax cut

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Marijuana reclassification would give Maryland’s cannabis industry a major tax cut


BALTIMORE — The U.S. Justice Department is moving to reclassify marijuana as a less dangerous drug. The historical drug policy change could end up saving cannabis businesses big bucks.

Marijuana is currently classified as a “Schedule 1” drug alongside heroin and LSD, by being deemed as having a high potential for abuse.

But the U.S. Drug Enforcement Administration is asking to move marijuana to Schedule III, alongside ketamine and some anabolic steroids

The DEA’s proposal, which still must be reviewed by the White House Office of Management and Budget, would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than some of the nation’s most dangerous drugs. 

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The reclassification would not federally legalize marijuana outright for recreational use.  

Reclassification would eliminate Maryland tax code 

Christina Betancourt Johnson, the CEO of Standard Wellness Maryland, said the reclassification would allow more funding for medical research on cannabis and its effects on people.

There’s also a major financial impact that cannabis businesses could feel in Maryland.

The national reclassification would eliminate the Section 280E tax code, which prohibits legal cannabis companies from deducting what would otherwise be ordinary business expenses.

“You might have an effective 80 percent tax rate for every dollar earned,” Johnson said. “Whereas competitive businesses in any other industry would have a 30ish percent tax rate. So, it’s very burdensome.”

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The tax code elimination would also be significant to the new cannabis businesses that are entering the state’s cannabis industry.

In March, Maryland regulators awarded adult-use marijuana social equity licenses to 174 growers, processors and dispensaries.

“This particular rescheduling effort is enormous,” Johnson said. “It will allow small business owners, particularly those who came through the social equity round, to get operational and fully reap the benefit of their hard work and their profits without that very burdensome 280E tax code.”

The latest data shows how quickly the cannabis industry is growing in Maryland since the state legalized adult marijuana use in July 2023. According to the Maryland Cannabis Administration, the state made $273 million in year-to-date cannabis market sales. 

When will marijuana be reclassified?

However, the drug rescheduling process will take some time. The rescheduling proposal entered the White House Office of Management and Budget on April 30th.

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Johnson said the agency then has 90 days to complete its review. But it is expected to work on an expedited timeline.

Then, the proposal goes back to the U.S. Department of Justice for a 60-day public comment period.

During that period, there will be a hearing in front of administrative law judges, who will conduct evidence to prepare a non-binding recommendation for the DEA.

If the judges approve, the DEA would publish a final order in the register. Johnson believes the process could be completed before the elections in November.

President Joe Biden called for a review of federal marijuana law in October 2022.

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Schedule III drugs are still controlled substances and subject to rules and regulations, and people who traffic them without permission could still face federal criminal prosecution.



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Maryland governor vows special session to redraw congressional maps after election

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Maryland governor vows special session to redraw congressional maps after election


Maryland Gov. Wes Moore said he plans to call a special session in Annapolis to redraw the state’s congressional district maps, reviving a contentious redistricting fight that stalled earlier this year.

“The status in Maryland is we are going to have a special session,” Moore said in an interview on CNN. Asked, “You are going to do it?” Moore replied, “We are going to do it.”

Moore told CNN the goal is for lawmakers to return to Annapolis and produce a new map. “Our House and our Senate will get together. They will come up with a resolution and bring it to my desk,” Moore said. “But the core criteria I’ve laid out is…doing nothing is not an option.”

It would be Moore’s second attempt at redistricting. Earlier this year, an advisory commission appointed by the governor proposed a map that would stretch the mostly Republican 1st Congressional District into largely Democratic Howard and Anne Arundel counties. The change would put Maryland’s only Republican member of Congress into a district with more Democratic voters.

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The proposal drew sharp criticism during a hearing. “Governor Moore and Democrats in Annapolis, you are stealing our voice and our vote,” one speaker said. Moore responded, “It’s an important question of what’s the value of one vote and I think the answer to that is ‘what’s the value of democracy.’” Del. Kathy Szeliga said, “How can you ask us to trust democracy when you are taking it so lightly.”

ALSO READ | Gov. Wes Moore selected as Democratic nominee for Maryland’s next governor: AP

The measure passed in the House but never came to a vote in the Senate. In Annapolis today, Senate Democrats gathered to discuss what to do next.

“I think they’re meeting to figure out what can we do to make sure the judges don’t get involved and overturn what they’re trying to do,” said political analyst John Dedie.

A UMBC poll last year found only a fourth of Maryland voters considered redistricting a priority, with crime, education and health care viewed as more important.

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Szeliga criticized Moore’s push, saying, “It’s unfortunate Wes Moore is doing the bidding of Democrats in Washington and not paying attention to the residents in the great state of Maryland.” Dedie said, “In many ways what he’s pursuing is future aspirations.”

Maryland’s last attempt to redraw congressional lines four years ago ended up in court, where a judge threw out the proposed maps, finding they were the product of “extreme partisan gerrymandering.” Szeliga, who successfully fought that court battle, said she is prepared to challenge another effort. “If they try to illegally change the constitution to make it unconstitutional we will challenge that,” she said.

Dediesaid a special session now appears likely. “The train has left the station. It’s just a matter of when it will arrive in Annapolis for special session,” he said.



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Navy ship USS Marinette arrives in Maryland for Sail250:

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Navy ship USS Marinette arrives in Maryland for Sail250:


One of the most unique ships featured in Sail250 Maryland and Airshow Baltimore can be found docked at the Baltimore Peninsula.

USS Marinette LCS25 is one of the most functional ships in the Navy fleet. At 370 feet long with 80 crew members, the ship has a helicopter landing pad and hangar, two rib boats in the belly of the vessel, and heavy artillery, including a cannon.

The ship has four engines, two of which are like jet engines, meaning it can sprint ahead of other vessels to intercept watercraft. It can also truck side to side and spin 360 degrees with controllable reversing and steering deflector buckets attached to the stern of the jet propulsion system. It can also traverse the littoral zones, water close to shore, and navigate waters as low as 15 feet deep.

“Where we shine is our ability to operate where other ships can’t,” said Cdr. Brian Sims, the ship’s executive officer.  “For a 370-foot ship, one of the smallest in the fleet, it packs a punch. We can go 40 plus knots.”

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The ship is used in counternarcotics missions primarily on the East Coast and in the Caribbean. 

It is based in Jacksonville, Florida, but was built in Marinette, Wisconsin, which is where the ship gets its name. It began operating in 2023 and has yet to deploy. The ship can be out on the water for weeks or even months.

“We go out and find drug trafficking individuals and intercept, and the Coast Guard then takes over and arrests,” Sims said.

The pilot house is where the ship truly shines. An officer and junior officer monitor the radar and navigation, while another sailor sits at the helm and oversees steering the vessel and monitoring the engines.

“This is a very unique design for Navy ships,” Sims added.

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The ship also hosts several heavy artillery pieces, including a cannon on the bow with different types of rounds to combat different threats. It can fire 220 rounds in a minute.   

With its rich Naval history, Baltimore is playing host to some of the Navy’s finest, and the crews are equally as excited to be here in Maryland, the backbone of the Navy, celebrating 250 years of American history.

“Baltimore is a fantastic city, steeped in maritime tradition. Of course, we have Fort McHenry that we sailed past and rendered honors to when we arrived,” Sims said. “Having the ability to be in this role in this position on board this ship to celebrate the nation’s 250th, it’s an absolute honor, and one that, one that gives us all pause, and lets us reflect on where we’ve come as a nation.”



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Maryland families are paying the price for failed energy policies

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Maryland families are paying the price for failed energy policies


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Del. Jason BuckelAs Maryland families head into another hot summer, many are about to receive an unpleasant reminder of just how badly some state leaders failed to address Maryland’s growing energy problems this year.

Higher energy bills are not coming by accident. They are the predictable result of years of poor planning and a continued refusal by Democratic leadership in Annapolis to confront the real issue facing our state: Maryland does not produce enough electricity to meet its own growing energy needs.

Instead of seriously addressing that challenge during this year’s legislative session, Democratic leaders celebrated passage of the so-called Utility Relief Act (House Bill 1532), which offers Marylanders roughly $12 in savings per month. At a time when families are facing soaring energy costs driven by a massive shortage of reliable in-state power generation, that is not meaningful relief. It is a political talking point designed to avoid the larger conversation Maryland desperately needs to have.

Our state imports nearly half of the electricity it uses. Nearly half of the power keeping homes cool, businesses operating and communities functioning every day comes from outside our borders. Yet even as demand for electricity continues to rise, Maryland continues falling behind on building the reliable generation capacity needed to support our future.

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That is not a serious long-term strategy.

Families across Maryland are already struggling with inflation, rising housing costs and economic uncertainty. Energy bills are becoming another major financial burden for working families, seniors and small businesses. But instead of focusing on increasing reliable power supply, meaning fully lowering consumer costs, and strengthening Maryland’s long-term energy security, Annapolis continues offering temporary fixes that fail to address the underlying problem.

The reality is simple: Maryland needs more power generation, and every responsible energy source should be part of the conversation. Natural gas, nuclear, renewables, battery storage, clean coal and emerging technologies all have a role to play in creating a more reliable and affordable energy future for our state.

Maryland also needs a broader conversation about the role experienced infrastructure providers and utilities can play in strengthening reliability and supporting future generation needs. These are organizations that already manage the systems Marylanders depend on every day and understand the long-term planning required to maintain dependable service.

Reliable and affordable energy is not a partisan issue. It is a basic requirement for economic growth, business investment and everyday quality of life.

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As summer begins and air conditioners start running around the clock, Maryland families will once again be reminded that energy policy decisions made in Annapolis have real world consequences.

Unfortunately, they are paying for those consequences every month.

Del. Jason Buckel is the Minority Leader of the Maryland House of Delegates and represents Allegany County in the Maryland General Assembly.



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