The fact that 26 states allow the sale of cannabis does not change things for those in the medical marijuana business. This is because the federal law does not in itself allow the sale of marijuana. Even though it does not prosecute those that are licensed by the state, some lawyers, investors and accountants still cannot act against the federal law. This leaves the whole situation even more complicated and tricky. One Pete Kadens, a partner based in Chicago recorded the difficulties that they face when making simple financial transactions. He states that even the most straightforward transactions suddenly become very complicated where medical marijuana is involved. Mr. Kadens is a partner with the Green Thumb Industries which operates two dispensaries and two cannabis cultivation sites in Illinois. He also claimed that it took them four months to open a bank account which normally takes a day.
These complaints have been raised by several dealers and the number is an adequate sample to represent those involved in medical marijuana business. Mr. Tim McGraw who is the founder and president of Downers Grove-based Revolution Enterprises also has his side of the story. He said that all their transactions however minor must be audited by the bank. It is now close to impossible to get a traditional mortgage from a bank. Taxes have become another thorn in the flesh for those doing the weed business. Even though the Federal government has put anti-marijuana laws in place, it has written tax rules to govern those who still sell it. These laws cover all other prohibited drugs. Anyone dealing in such drugs cannot make usual business deductions and this means that taxes go over 50%. Lawyer Hilary Bricken says that the tax situation is not expected to change any time soon.
The medical law in Illinois has been noted to be one of the most restrictive. This is because only forty conditions have been approved for medical marijuana treatment. The main issue is that chronic pain is not among those conditions and this is definitely a big blow. A great percentage of patient bases are made up of those with chronic pains. Consequently, if one doesn’t offer treatment for chronic pain then their client base suffers a great deal. One judge has however ordered that the state should include migraines in the list. Due to lifestyle changes, most people suffer migraines almost daily. Convectional medication has not been very effective in treating this condition. Medical marijuana could be the solution that has been sought for long. Even though Mr. Bricken is practicing towards the cannabis law, his hopes on the situation are not very high.
As at 30th September, the state had only approved 11000 patients to purchase marijuana for medication. This figure was way below the anticipations of the growers and distributers. As it stands, the state seemingly gets more benefits from the medical marijuana business than the growers and distributers. From the growers, the state collects 7% fee and 1% sales tax from the retailers. When businesses apply for cultivation licenses, they each pay a certain amount as application fee. Then out of all the applicants, those who win are again required to pay a permit fee that has to be renewed every year. Those seeking dispensary licenses also go through the same. However, Jack Campbell seems to have a positive view of the situation all together. Being the one who oversees medical marijuana program in Illinois, he says that there is progress. He has urged all to be patient since this is a new program that must take time to be established.