SAFE Act Dead for 2022, Would Have Extended Banking Services to Cannabis Industry

Cash-only transactions expose retailers to unnecessary danger.

Oregon politicians led by U.S. Rep. Earl Blumenauer and U.S. Sen. Ron Wyden, both Democrats, have long pushed to overturn the federal prohibition on banks providing services to the legal cannabis industry.

Because cannabis remains illegal at the federal level, federal banking regulators have discouraged banks from accepting deposits or providing credit or other services even to legitimate cannabis businesses in the states that have legalized cannabis.

The result: Retailers, such as those in Oregon, can only accept cash. That is highly inconvenient for customers and worse for retailers—imagine lugging a duffel bag full of bills to Salem each quarter to pay taxes to the Oregon Department of Revenue.

READ MORE: https://www.wweek.com/news/2022/12/20/safe-act-dead-for-2022-would-have-extended-banking-services-to-cannabis-industry/

...Since the sale of medical marijuana began in Missouri, the industry has boomed. Sales, which began in October 2020, recently surpassed $600 million, according to Lyndall Fraker, director of public outreach for the Missouri Division of Cannabis Regulation.

Tax rates over 70%

The 280E tax code is one of the biggest challenges the marijuana industry faces nationwide, said David Brodsky, director of retail at The Farmer's Wife, which operates three dispensaries in southern Missouri.

READ MORE: https://www.news-leader.com/story/news/local/2023/01/07/banking-for-marijuana-businesses-is-accessible-but-challenging/69777377007/