Keeping pace with the ever changing state and federal regulations of being a cannabis employer is complicated. A misstep can be financially devastating.
While the rest of the business world seems to be struggling, the Cannabis Industry appears to be booming.
The Coronavirus (COVID-19) has had major impacts on the world causing many businesses to close their doors temporarily during the pandemic and some may never open again. Most have come to the acceptance that this is simply the way things are for everyone during this trying time; however, it seems to be a different scene in the cannabis industry.
While the rest of the business world seems to be struggling, the Cannabis Industry appears to be booming while breaking record sales. Oregon is particularly impressive with its massive surge in sales, breaking $89 million in marijuana sales in April. This is the second month in a row that the state has seen a record-breaking amount in sales for the industry. In fact, Oregon reported a 45% increase in sales from last year’s figures making April 2020 the highest grossing month on record for the state.
The Federal Government has yet to recognize the industry nationwide but the success that the industry has seen during the Coronavirus pandemic might be the boost that supporters have been waiting for to push the industry forward. With the $100 million that Oregon collects from annual tax revenue from cannabis sales, legal marijuana has been a steady source of tax revenue which could be the reason why over 25 states have declared these industry related businesses as essential services.
While other businesses have had to close their doors or reduce their workforce during the pandemic, supporters of the industry say that expanding these types of businesses can create jobs during this time of economic decline. The previously implemented CARES Act did not provide the opportunity for relief aid to businesses within the Cannabis Industry; however, the newest COVID-19 relief bill, which was passed through the U.S. House, can aid related businesses that are in need.
The most recent bill has yet to be passed into law, but if it does, it may be the move in the right direction for supporters of the industry to push for nationwide legalization. In theory, the growth of the industry can bring with it: new job opportunities, a new source of aid in the medical industry, and an increase in government tax collection. The success that the Cannabis industry has seen is the unexpected triumph during the recent economic decline caused by the Coronavirus.