Cannabis & Craft Beer Blog

An Ohio federal judge has blocked the enforcement of Ohio’s statewide hemp ban. In two consecutive cases, the United States District Court for the Northern District of Ohio has found Ohio’s prohibition on intoxicating hemp products to be in violation of the United States Constitution. This ruling temporarily suspends the Ohio law and allows the named plaintiffs to resume operations until August 21, 2026, when the temporary restraining order expires.

The rescheduling of certain cannabis products to Schedule III represents a meaningful shift in federal cannabis policy and offers long-awaited tax relief for portions of the industry. However, the benefits are limited in scope, leaving recreational operators subject to the continued constraints of Section 280E. Additionally, critical questions—such as the ability to obtain retroactive relief—remain unresolved. Until regulatory and IRS guidance provides greater clarity, cannabis businesses and their advisors should carefully evaluate their tax positions and compliance strategies in light of this evolving landscape.

In November 2023, Ohio voters ratified Issue 2, which legalized recreational marijuana in the Buckeye State. Issue 2 took effect a month later, on December 7, 2023, but not without a move to make some changes by the Ohio state legislature. While the Ohio Senate passed proposed changes to Issue 2, the House has yet to pass those changes. Meanwhile, the Ohio Division of Cannabis Control has released its proposed rules regarding recreational marijuana in Ohio.