Trulieve and the Future of Cannabis in Florida

The TDR Three Key Takeaways regarding Trulieve and Florida marijuana legalization:

1. Trulieve would have the most upside if Florida’s marijuana legalization passes.
2. Tax reform is crucial for Trulieve’s financial operations amid legalization.
3. Florida’s potential marijuana market is massive, says Trulieve CEO.

Last week, polling data showed that marijuana legalization in Florida is at a critical point. Although most support the initiative, it still falls short of the 60 percent approval needed for constitutional amendments in the state. According to Cherry Communications’ survey for the Florida Chamber of Commerce, 58 percent of likely voters are in favor, with 37 percent opposed and five percent undecided. This figure slightly surpasses results from other polls, such as USA Today/Ipsos, which recorded a 56 percent support rate, and a Florida Atlantic University poll at 47 percent.

CEO Kim Rivers from Trulieve outlined the high stakes in a Cheddar interview: “Rescheduling, we believe, is a crucial domino and really the first domino that could fall here as it relates to a potential series of federal reforms.” She also emphasized the broader implications of legalization, adding, “It would pave the way for additional research, which we have been craving in this country.”

The economic impact of the current federal classification of cannabis is significant for companies like Trulieve. “It would eliminate the 280E tax burden…we have paid hundreds of millions of dollars as a 280E taxpayer under schedule one,” Rivers explained. She compared the company’s tax obligations to those unfairly imposed on illicit activities, stating, “Currently under schedule one, we pay taxes in the same way, candidly, a heroin dealer would.”

As Rivers suggested, the change to schedule three would revolutionize the industry’s financial transactions: “The shift to schedule three would automatically change that position and have all cannabis companies pay in the usual way, like any other business in the United States.” Additionally, safer banking practices would emerge, “Safer banking simply allows banks to have a safe harbor…that would give their compliance departments comfort so that they could bank our businesses in this industry.”

The potential market for legalized marijuana in Florida is extensive. Rivers highlighted, “We currently have just under 900,000 medical patients, but there are 22 million residents and 138 million unique tourist visits in Florida. So this market could be massive.” Trulieve champions the benefits of legal, regulated cannabis, noting, “We are strong supporters of access to safe, regulated, tested cannabis…the market is very interesting for us.”

However, the path to legalization is hampered by political opposition. The Florida Republican Party and Governor Ron DeSantis have expressed concerns that legalization could negatively impact the state’s quality of life, illustrating the contentious atmosphere surrounding this initiative.

As Florida approaches the decision on this crucial ballot initiative, the differing polling results and strong political debates underscore the uncertain yet potentially significant future of marijuana policy in the state. This highlights the broader national discussions on cannabis reform and its implications for both individuals and businesses across the United States. Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter.